Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Taxable
adj. 1. Subject to taxation <interest earned on a checking account is taxable income. 2. (Of legal costs or fees) assessable <expert-witness fees are not taxable court costs>.
accumulated taxable income
The income of a corporation as adjusted for certain items (such as excess charitable contributions), less the dividends-paid deduction and the accumulated-earnings credit. ( It serves as the base upon which the accumulated-earnings tax is imposed. See accumulated-earnings tax under TAX.
taxable distribution
A generation-skipping transfer from a trust to the beneficiary (i.e., the skip person) that is neither a direct skip nor a taxable termination. See GENERATION-SHIPPING TRANSFER; generation-skipping transfer tax under TAX; generation-skipping trust under TRUST; SKIP PERSON.
taxable estate
A decedent's gross estate reduced by allowable deductions (such as administration costs and ESOP deductions). IRCC (26 USCA) § 2051. 0 The taxable estateis the amount that is subject to the federal unified transfer tax at death.
taxable gift
See GIFT,
taxable gift.
A gift that, after adjusting for the annual exclusion and applicable deductions, is subject to the federal unified transfer tax. IRC (26 USCA) § 2503.
taxable income
Gross income minus all allowable deductions and exemptions. 0 Taxable income is multiplied by the applicable tax rate to compute one's tax liability.
taxable termination
A taxable event that occurs when (1) an interest in a generation-skipping trust property terminates (as on the death of a skip person's parent who possessed the interest), (2) no interest in the trust is held by a nonskip person, and (3) a distribution may be made to a skip person. 0 Before the creation of taxable terminations in 1976, a taxpayer could create a trust that paid income to a child for life, then to that child's child for life, and so on without incurring an estate or gift tax liability. See GENERATION-SKIPPING TRANSFER; generation-skipping transfer tax under TAX; generation-skipping trust under TRUST; SKIP PERSON.
taxable year
See TAX YEAR.