• Glossary

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    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.