What PREPAID INTEREST means: Interest paid in advance is deductible only as it accrues. The one exception to this rule is for certain points paid by a cash-basis taxpayer to obtain financing for a loan used to purchase, reconstruct, or improve his or her principal residence.
- Definition Portfolio Income:
- Dictionary Portfolio income is not passive income for the passive loss rules. Portfolio income includes dividends, interest, capital gains from property that produces portfolio income, and royalties prepaid interest definition.
- Definition Prepaid Expenses:
- Dictionary are expenses that are paid in advance. Cash-basis as well as accrual-basis taxpayers usually are required to capitalize prepayments for rent, insurance, etc. that cover more than one year. Deductions prepaid interest explain.
- Definition Patent:
- Dictionary of an inventor to make, use, or sell his invention for a period of years. A patent is an intangible asset that may be depreciated over its remaining life. The sale of a patent usually results in prepaid interest what is.
- Definition Principal Residence:
- Dictionary residence is generally the home in which a taxoayer lives most of the time. A taxpayer who sells a principal residence that he or she owned and lived in for at least two years in the five-year period prepaid interest meaning.
How works Prepaid Interest meaning in Tax definitions P .
