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Tax Glossary
What Is the PTP Income Component?
The PTP income component is a specific part of the Qualified Business Income (QBI) deduction calculation that allows investors to...
Tax Glossary
What Is “Physical presence test”?
The physical presence test is a mechanical, day-counting standard used by the IRS to determine whether a U.S. citizen or...
Tax Glossary
What Is “Personal holding company tax”?
The personal holding company (PHC) tax is a 20% penalty tax imposed by the IRS on certain closely held C...
Tax Glossary
What Is a “Partnership representative”?
A Partnership Representative is the designated person or entity legally authorized to communicate with the IRS on behalf of a...
Tax Glossary
What Are “Partnership Audit Rules”?
Partnership audit rules are the specific procedures the IRS uses to examine the tax returns of business partnerships. Under the...
Tax Glossary
What Is “Partner’s share of liabilities”?
A partner’s share of liabilities represents the portion of a partnership’s debts that is assigned to an individual partner for...
Tax Glossary
What Is a One-Participant 401(k)?
A One-Participant 401(k) is a traditional 401(k) retirement plan designed exclusively for self-employed individuals and business owners who have no...
Tax Glossary
What Is “ Nonresident alien ”?
A nonresident alien is a non-U.S. citizen who does not hold a green card and has not spent enough time...
Tax Glossary
What Is a Nonrecourse Liability?
A nonrecourse liability is a type of loan where the borrower is not personally liable for the debt. If the...
Tax Glossary
What Is a Nonqualified Distribution?
A nonqualified distribution is a withdrawal from a tax-advantaged savings account—such as a Roth IRA, Roth 401(k), Health Savings Account...