. How to Do Marginal Analysis in Business and Microeconomics What is managerial economics in simple words? Managerial economics is the application of economic principles and methods to the decision-making process within an organization. It helps managers to make better decisions by using economic analysis to understand the potential impacts of their actions on the … Read more
The term “taxation without representation” refers to the idea that a government should not be allowed to tax a citizen without that citizen having a say in how that government is run. This concept is often cited as one of the main reasons for the American Revolution. In the years leading up to the Revolution, … Read more
The Internal Revenue Service (IRS) Publication 551, Basis of Assets, is a document that provides guidance on how to determine the basis of assets for tax purposes. The basis of an asset is its cost or other value used to determine gain or loss when the asset is sold. What can be included in cost … Read more
The Net Investment Income (NII) is the difference between a company’s total investment income and its total investment expenses. This includes interest, dividends, and other forms of investment income, minus any investment expenses such as commissions or fees. The NII can be used to measure a company’s profitability and overall financial health. It is also … Read more
The convenience of employer test definition is a test used by the Internal Revenue Service (IRS) to determine whether an employer is liable for taxes on certain employee fringe benefits. The test is based on whether the employer provides the benefit for the convenience of the employer or for the benefit of the employee. If … Read more
A luxury tax is a tax that is levied on items that are considered to be luxuries. The items that are subject to luxury tax vary from country to country, but typically include items such as jewelry, furs, and expensive automobiles. The luxury tax is usually imposed at a higher rate than the standard sales … Read more
Tax lot accounting is a method of accounting for the purchase and sale of securities that aims to minimize capital gains taxes. When an investor buys a security, the tax lot with the highest cost basis (the original purchase price) is sold first. This method is also known as first-in-first-out (FIFO) accounting. What is tax … Read more
The term “electronic filing” refers to the process of filing taxes electronically, either through a tax preparation software program or directly with the government tax agency. In most cases, electronic filing is the preferred method of filing taxes as it is faster, more accurate, and often results in a quicker refund. What is the difference … Read more
. Inheritance Tax: What It Is, How It’s Calculated, Who Pays It. How much can a parent gift a child tax free in 2022? There is no gift tax in the United States, so a parent can gift any amount of money to a child tax-free. However, if the parent dies within five years of … Read more
A transfer tax is a tax imposed on the transfer of ownership of property. The tax is based on the value of the property being transferred. Which document transfers property to the buyer quizlet? The answer to this question depends on the jurisdiction in which the property is located. In most jurisdictions, the document that … Read more
