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
Land
Last-in, First-out Inventory Valuation Method (LIFO)
Legally Separated
Lifetime Learning Credit
Like-Kind Exchange
Limited Partner
Listed Property
Local Tax
Long-Term Capital Gain or Loss
Lump-sum Distribution
Luxury Automobile Limits
Real estate, which does not include buildings and other improvements. Before you depreciate rental property or real estate used in a business, you must first separate the portion of basis that applies to land. The cost of the land is not depreciable.
Last-in, First-out Inventory Valuation Method (LIFO)
A method of valuing your inventory that assumes any inventory you sold was from the last inventory you purchased. When you cannot specifically identify items of inventory, and you purchased quantities of inventory at different times for different prices, you must use a method such as LIFO or FIFO (first-in, first-out inventory valuation method) to determine your cost of goods sold and the value of your remaining inventory.
For married couples, living apart under a court order or separate maintenance agreement.
A new tax credit for qualified post-secondary and job-training educational expenses. You may qualify for a credit of up to $1,000 a year for an unlimited number of years.
A tax-deferred exchange of similar items you use in your business or hold for investment, not including securities and other indebtedness or interests such as stocks and bonds. The items must be the same type, but they do not need to be of the same grade or quality.
Unlike a general partner, a limited partner does not play an active role in the business and has limited liability for losses from the partnership. A limited partner's deductible losses are limited under the passive loss rules.
Computers; cellular phones; vehicles; and property of a type generally used for entertainment, recreation, or amusement are all subject to special depreciation rules if they are used 50 percent of the time or less for business purposes.
A tax imposed by your local government for expenses such as garbage collection, water treatment, and street cleaning.
A type of distribution from a pension plan, in which you receive the entire balance within one tax year because of an event such as retirement. A lump-sum distribution can be rolled over into another plan or may be eligible for favorable 5- or 10-year averaging methods.
Limits on the amount of depreciation you can take annually on an automobile used for business purposes.
