Glossary If this doesn't clear things up, just come in. We'll explain everything you need to know. A B C D E F G H I J K L M N O P Q R S T U V W 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. Advanced Premium Tax Credit (APTC) - An equal portion of the estimated Premium Tax Credit for the taxpayer that is paid directly to the health insurance company from the Treasury Department to help reduce the taxpayer's out-of-pocket insurance costs. Affordable Care Act (ACA) - Sometimes referred to as "Obamacare", the Affordable Care Act (ACA) is a federal law that requires all individuals to have health insurance beginning January 1, 2014. The regulations include a tax credit to help pay the insurance premiums, a penalty for taxpayers who do not have insurance and do not qualify for an exception, and a penalty for large employers who do not offer affordable minimum essential coverage to their employees. Applicable Taxpayer - An individual whose household income is between 100% and 400% of the Federal Poverty Level, can claim their own exemption, and will not be filing a tax return using the married filing separately status.