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Tax Glossary
What Is “Brokerage statement”?
A brokerage statement is a periodic document provided by a financial institution that summarizes the activity, holdings, and market value...
Tax Glossary
What Is “Book Income”?
Book income is the net profit a business reports on its own financial statements or “books” according to standard accounting...
Tax Glossary
What Is “Assets”?
Assets are resources or items of value owned by an individual or a business that are expected to provide a...
Tax Glossary
What Is “Balance Sheet”?
A balance sheet is a financial “snapshot” that shows exactly what a person or business owns and owes at a...
Tax Glossary
What Is “Amount realized”?
The amount realized is the total value you receive when you sell, exchange, or otherwise dispose of an asset. It...
Tax Glossary
What Is “Allocated tips”?
Allocated tips are amounts that an employer assigns to tipped employees when the total tips reported by the entire staff...
Tax Glossary
What Is “Adjusted basis”?
Adjusted basis is the net cost of an asset after accounting for increases (like improvements) or decreases (like depreciation) during...
Tax Glossary
What Is “1099 income”?
1099 income refers to money earned from sources other than a traditional employer who pays you a regular salary or...
Tax Glossary
What Is “Additional Medicare Tax”?
The Additional Medicare Tax is a 0.9% surtax that applies to individuals whose earned income exceeds specific legal thresholds. Unlike...
Tax Glossary
What Is a “1099 contractor”?
A 1099 contractor is a self-employed professional or business entity hired to perform specific tasks or projects for a client....