What Is Taxation?

What is Taxation?
A means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. see also taxation principles.

What is Taxable year?
Twelve-month period used as the basis for computing tax on income received during that period. Also called tax year.

What is Tax Year?
Standard 12 month period (such as a calendar year or a fiscal year) used for computing a tax payer's tax liability.

What is Taxable Income?
Gross income from which standard deductions and other allowances have been subtracted.

What is Taxable Value?
Percentage of property value used to determine how much the property owner pays in taxes.

What is Taxable Estate?
An amount calculated as the adjusted gross estate minus any marital deduction property and any charitable deductions.


What is Taxable Equivalent Yield?
Restatement of total income earned from an investment portfolio (including income from tax exempt securities such as municipal bonds) in terms of taxable, for comparing its yield with those of the other investment portfolios.

What is Tax Write off?
Offsetting depreciation, expenses, and losses against tax payer's income.

What is Tax Waiver?
A state issued document that specifies the tax department will transfer stock as indicated. Tax waivers are often used to transfer ownership of property.

What is Tax Sink?
Jurisdiction in which no income tax is imposed.

What is Tax Sheltered Income?
Tax-deferred or tax-exempt earnings.

What is Tax Supplement?
Local tax imposed be a lower government unit (such as a municipality) on the same tax base over which a higher governmental unit (state or federal government) has already imposed a similar tax.

See: Taxation Explanation