What INCOME AVERAGING means: A method by which farmers may sometimes reduce tax liability by computing their income tax as if their current farm income had been spread evenly over the preceding three years. The term also is sometimes used when referring to the 10-year averaging method, which is used for computing the tax on a lump-sum distribution from a qualified employer plan. See "10-Year Averaging.".
- Definition Inventory:
- Dictionary For income tax purposes, inventory consists of items acquired for sale to customers in the regular course of a taxpayer's trade or business income averaging definition.
- Definition Insolvency:
- Dictionary condition in which a taxpayer's total liabilities (debts owed) exceed the total fair market value of all his or her assets (cash and other property). A taxpayer is insolvent to the extent his or income averaging explain.
- Definition Incentive Stock Option:
- Dictionary option that allows an employee to purchase stock of the employer below current market price. Although the grant or exercise of such an option results in no income for the "regular" tax, the income averaging what is.
- Definition Investment Property:
- Dictionary includes property that produces interest, dividends, or royalties other than in the course of a taxpayer's business. Investment property also includes property (not in the course of the income averaging meaning.
How works Income Averaging meaning in Tax definitions I .
