• Glossary

    If this doesn't clear things up, just come in. We'll explain everything you need to know.

    Click the first letter of the term you're searching for to get an easy-to-understand explanation.


  • Abandonment -

    The act of voluntarily and permanently giving up possession and use of property with the intention of ending ownership without transferring ownership to another person.

    Abode -

    The taxpayer's home, habitation, residence, domicile, or place of dwelling.

    Academic Period -

    A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution.

    Accelerated Cost Recovery System (ACRS) -

    The name given to tax rules relating to recovering, through depreciation deductions, the cost of property used in a trade or business to produce income.ACRS applies to property first used before 1987.

    Accelerated Death Benefits -

    Any amounts paid under a life insurance contract, prior to death, for an individual who is terminally or chronically ill.

    Accountable Plan -

    A reimbursement or allowance arrangement that requires an employee to account to their employer for their business expenses within a reasonable time.

    Accounting Method -

    The way a taxpayer accounts for income and expenses.

    Active Conduct of Trade or Business -

    Generally, to participate meaningfully in the management or operations of a trade or business.

    Active Participation -

    Participation in a rental real estate activity in which the taxpayer owns at least 10% of the rental property and makes significant and bona fide management decisions, such as approving new tenants, deciding on rental terms, and approving expenditures.