Glossary of Tax Terms
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Gain or Loss
Gambling Income and Losses
Garnishment
General Partner
Gift Tax
Golden Parachute Arrangement
Grantor Trust
Gross Dividends
Gross Income
Gross Income Test
Gross Profit Percentage
Gross Receipts
Group Life Insurance
Guaranteed Payments to Partners
The difference between your basis in an asset (usually your cost) and the value of property you receive when you sell or otherwise dispose of the asset.
Income and losses from gambling, such as lotteries, bingo, and racing. Gambling income is taxable regardless of whether the gambling activity is legal or illegal. Gambling losses are only deductible to the extent you report gambling income for the tax year.
An amount withheld from your pay and remitted to another party, such as a creditor. You must include in your taxable income any amount that was garnished from your pay, because the full amount of your pay is considered to have been received by you even though some was withheld to pay your debts.
A partner in a partnership whose liability is not limited. All partnerships must have at least one general partner. A general partner is usually also involved in the day-to-day management of the partnership. A limited partnership may also have limited partners who are basically investors and whose liability for partnership debts is limited.
An excise tax levied on an individual who gives more than $10,000 per year to another individual.
A contract made, usually with a senior executive, that pays a generous sum of money or other benefits when the executive loses his or her position due to a company merger or takeover. The IRS limits the amount of payments made under a golden parachute arrangement that a company can deduct.
A trust in which the grantor retains some interests and control and therefore is taxed on any income from the trust.
The total dividends you received. Your gross dividends are the sum of any ordinary dividends, capital gains distributions, and nontaxable distributions you received during the tax year.
One of five tests a person must meet for you to claim him or her as a dependent so that you can take an exemption. To meet this test, the person must have less than $2,700 in total income during the tax year. If this person is your child under 19 years old, or a full-time student under 24 years old, he or she does not need to meet this test.
The percentage of payments that you receive, such as from installment sales or annuities, which is from your profit or investment earnings.
For installment sales: First, subtract your basis from the total amount you can expect to receive from the sale. Then divide it by the total amount you can expect to receive. Use the gross profit percentage to calculate the portion of your payments received that is gain and the portion that is a return of your basis.
For annuities: First, subtract your investment in the contract from the total amount you can expect to receive from the annuity, then divide it by the total amount you can expect to receive. Use the gross profit percentage to calculate the portion of your payments received that is gain and the portion that is a return of your investment.
The total sales for your business during the year before deductions for returned items, allowances, and discounts.
Life insurance usually obtained by an employer for employees. The premiums for the first $50,000 of life insurance per employee are deductible by the employer. Premiums are also nontaxable to the employee.
