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Tax Glossary
What Is “Fair market value”?
Fair market value (FMV) is the price an asset would sell for on the open market between a willing buyer...
Tax Glossary
What Is “Estimated tax for self-employed”?
Estimated tax for the self-employed is a “pay-as-you-go” method used to pay both income tax and self-employment tax on earnings...
Tax Glossary
What Is “Equity”?
In the simplest terms, equity is the value of an asset you truly “own” after subtracting any debts or liabilities...
Tax Glossary
What Is “Employment tax”?
Employment tax is a broad term used by the IRS to describe the various taxes that must be paid when...
Tax Glossary
What Is “Employer tax deposit”?
An employer tax deposit is the actual payment of payroll taxes that a business owner sends to the IRS. This...
Tax Glossary
What Is “Depreciation recapture”?
Depreciation recapture is a tax process that allows the IRS to collect taxes on the financial gain a taxpayer realizes...
Tax Glossary
What Is “Distribution”?
A distribution is a payment of cash, stock, or physical assets from an entity—such as a business or a retirement...
Tax Glossary
What Is the “Deduction for Half of Self-Employment Tax”?
The deduction for half of self-employment tax is an “above-the-line” tax adjustment that allows self-employed individuals to subtract 50% of...
Tax Glossary
What Is “Covered security”?
A covered security is an investment, such as a stock, bond, or mutual fund, for which your broker is legally...
Tax Glossary
What Is “Contractor tax form”?
A contractor tax form is a document used to report payments made to an individual or business that provided services...