Question 1

What is a 1031 Exchange?

Accepted Answer

A 1031 exchange is a provision under IRC Section 1031 that allows real estate investors to defer capital gains taxes by reinvesting the proceeds from the sale of an investment property into a like-kind replacement property. The exchange must follow strict timelines, including a 45-day identification period and a 180-day closing period. When executed correctly, a 1031 exchange defers both federal and state capital gains taxes indefinitely.

Question 2

What is Accelerated Depreciation?

Accepted Answer

Accelerated depreciation is a method that allows taxpayers to deduct a larger portion of an asset's cost in the early years of its useful life, rather than spreading deductions evenly over time. Common accelerated methods include MACRS, bonus depreciation, and Section 179 expensing. Accelerated depreciation is a core strategy in real estate tax planning and cost segregation studies.

Question 3

What is an Accountable Plan?

Accepted Answer

An accountable plan is an employer-sponsored reimbursement arrangement that allows business owners and employees to receive tax-free reimbursements for legitimate business expenses. To qualify, the plan must require a business connection, substantiation of expenses within a reasonable time, and return of any excess reimbursement. Accountable plans are frequently used by S-Corporation owners to deduct expenses that would otherwise be nondeductible.

Question 4

What is the Accrual Method?

Accepted Answer

The accrual method is an accounting method that records income when earned and expenses when incurred, regardless of when cash actually changes hands. The accrual method is required for businesses with average annual gross receipts exceeding $30 million, though many smaller businesses may also elect it. It provides a more accurate picture of financial performance compared to cash-basis accounting.

Question 5

What is Active Income?

Accepted Answer

Active income is income earned through direct participation in a trade, business, or employment activity. Active income includes wages, salaries, tips, commissions, and income from businesses in which the taxpayer materially participates. For tax planning purposes, active income is distinguished from passive income and portfolio income, each of which is subject to different tax rules.

Question 6

What is Adjusted Gross Income?

Accepted Answer

Adjusted Gross Income (AGI) is total gross income minus specific above-the-line deductions such as contributions to retirement accounts, student loan interest, and self-employment tax. AGI appears on line 11 of Form 1040 and serves as the starting point for calculating taxable income. Many tax credits, deductions, and phase-outs are tied to AGI thresholds, making it a critical figure in tax planning.

Question 7

What is the Alternative Minimum Tax?

Accepted Answer

The Alternative Minimum Tax (AMT) is a parallel tax system that ensures high-income taxpayers pay a minimum amount of federal income tax, even if they have significant deductions or credits under the regular tax system. The AMT recalculates taxable income by adding back certain preference items such as state and local tax deductions, incentive stock option gains, and accelerated depreciation. Taxpayers pay whichever is higher -- the regular tax or the AMT.

Question 8

What is an Amended Return?

Accepted Answer

An amended return is a corrected version of a previously filed tax return, submitted on Form 1040-X for individual returns. Taxpayers file amended returns to correct errors, claim missed deductions or credits, or adjust income reported on the original filing. Under IRC Section 6511, amended returns must generally be filed within three years of the original due date to claim a refund.

Question 9

What is Amortization?

Accepted Answer

Amortization is the gradual write-off of an intangible asset's cost over its useful life, similar to depreciation for tangible assets. Common amortizable assets include patents, copyrights, franchise agreements, and Section 197 intangibles such as goodwill. Amortization is typically calculated using the straight-line method over 15 years for Section 197 assets.

Question 10

What are At-Risk Rules?

Accepted Answer

At-risk rules are tax rules under IRC Section 465 that limit a taxpayer's deductible losses to the amount they have economically at risk in an activity. The at-risk amount generally includes cash invested, the adjusted basis of property contributed, and amounts borrowed for which the taxpayer is personally liable. These rules prevent taxpayers from claiming losses in excess of their actual economic exposure.

Question 11

What is the Augusta Rule?

Accepted Answer

The Augusta Rule is a provision under IRC Section 280A(g) that allows homeowners to rent their personal residence for up to 14 days per year without reporting the rental income on their tax return. Business owners can use this rule strategically by having their company rent their personal home for legitimate business meetings or events. The rental payments become a deductible business expense for the company while remaining tax-free to the homeowner.

Question 12

What is a Backdoor Roth IRA?

Accepted Answer

A Backdoor Roth IRA is a strategy that allows high-income earners who exceed Roth IRA income limits to contribute to a Roth IRA indirectly. The taxpayer first makes a nondeductible contribution to a traditional IRA, then converts it to a Roth IRA. The pro-rata rule under IRC Section 408(d)(2) must be considered, as existing pre-tax IRA balances can create a taxable event upon conversion.

Question 13

What is Basis?

Accepted Answer

Basis is the original cost or value of an asset for tax purposes, used to calculate gain or loss upon sale or disposition. Basis can be adjusted upward for improvements and certain expenses, or downward for depreciation, casualty losses, and other deductions taken. Understanding basis is essential for accurately computing capital gains and depreciation deductions on real estate and business assets.

Question 14

What is a Beneficial Owner?

Accepted Answer

A beneficial owner is the individual or entity that ultimately owns or controls an asset, even if legal title is held in another name or through an intermediary. The Corporate Transparency Act requires many companies to report beneficial ownership information to FinCEN. Identifying beneficial owners is important for tax compliance, anti-money laundering regulations, and entity structuring.

Question 15

What is Bonus Depreciation?

Accepted Answer

Bonus depreciation is a federal tax incentive that allows businesses and real estate investors to deduct a significant percentage of the cost of qualifying assets in the year they are placed in service, rather than depreciating them over their full recovery period. Under the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation has been made permanent for qualifying property. Bonus depreciation is a key component of cost segregation strategies for maximizing first-year tax deductions.

Question 16

What is Boot in a 1031 Exchange?

Accepted Answer

Boot is cash or non-like-kind property received in a 1031 exchange that does not qualify for tax deferral. When a taxpayer receives boot, the gain attributable to the boot is recognized and taxable in the year of the exchange. Common examples include cash proceeds, mortgage relief in excess of new debt, and personal property received as part of a real estate exchange.

Question 17

What is the Built-In Gains Tax?

Accepted Answer

The built-in gains tax is a corporate-level tax imposed on S-Corporations that were previously C-Corporations, applicable to gains on assets that existed at the time of the S-election. The built-in gains tax applies if the S-Corporation sells appreciated assets within the recognition period (currently five years) after converting from C-Corporation status. This tax is assessed at the highest corporate rate on the net recognized built-in gain.

Question 18

What is Business Use Percentage?

Accepted Answer

Business use percentage is the proportion of an asset's total use that is attributable to business purposes, expressed as a percentage. The business use percentage determines the deductible portion of expenses related to vehicles, home offices, equipment, and other mixed-use assets. Taxpayers must maintain contemporaneous records to substantiate their business use percentage in the event of an IRS audit.

Question 19

What is a C-Corporation?

Accepted Answer

A C-Corporation is a business entity taxed separately from its owners under Subchapter C of the Internal Revenue Code. C-Corporations pay corporate income tax on profits and shareholders pay tax again on dividends, resulting in double taxation. Despite this, C-Corporations offer advantages including unlimited shareholders, multiple stock classes, and the 21% flat corporate tax rate established by the Tax Cuts and Jobs Act.

Question 20

What are Capital Gains?

Accepted Answer

Capital gains are the profit realized from the sale of a capital asset such as real estate, stocks, or business interests, calculated as the difference between the sale price and the asset's adjusted basis. Long-term capital gains (on assets held more than one year) are taxed at preferential rates of 0%, 15%, or 20%, depending on the taxpayer's income. Short-term capital gains are taxed as ordinary income.

Question 21

What is Capitalization?

Accepted Answer

Capitalization is the process of recording an expenditure as an asset on the balance sheet rather than expensing it immediately, and recovering its cost over time through depreciation or amortization. Under IRC Section 263, amounts paid to acquire, produce, or improve tangible property must generally be capitalized. Capitalization rules are central to determining the proper tax treatment of real estate improvements and business assets.

Question 22

What is a Carryforward?

Accepted Answer

A carryforward is the ability to apply unused tax deductions, credits, or losses to future tax years when they cannot be fully utilized in the current year. Common carryforward items include net operating losses (NOLs), excess capital losses, charitable contribution deductions, and various tax credits. Carryforward provisions allow taxpayers to smooth their tax burden across multiple years and maximize the benefit of available deductions.

Question 23

What is a Cash Balance Plan?

Accepted Answer

A cash balance plan is a type of defined benefit retirement plan that allows business owners and high-income professionals to make substantial tax-deductible contributions, often exceeding $100,000 per year. Each participant has an individual account with a guaranteed annual interest credit, combining the high contribution limits of a defined benefit plan with the portability of a defined contribution plan. Cash balance plans are particularly effective for business owners aged 45 and older seeking to accelerate retirement savings while reducing current taxable income.

Question 24

What is Catch-Up Depreciation?

Accepted Answer

Catch-up depreciation is a method that allows taxpayers to claim previously unclaimed depreciation deductions on assets that were not properly depreciated in prior years. This is typically accomplished by filing Form 3115 (Application for Change in Accounting Method) to adopt the correct depreciation method. Catch-up depreciation is especially valuable for real estate investors who can retroactively apply cost segregation study results to properties placed in service in earlier years.

Question 25

What is a Charitable Remainder Trust?

Accepted Answer

A charitable remainder trust is an irrevocable trust that distributes income to beneficiaries for a specified period, after which the remaining assets pass to a designated charity. The donor receives a partial income tax deduction at the time of the contribution and can defer capital gains on appreciated assets transferred to the trust. Charitable remainder trusts are commonly used in estate planning and for managing concentrated stock or real estate positions.

Question 26

What is Constructive Receipt?

Accepted Answer

Constructive receipt is a tax doctrine holding that income is taxable when it is made available to the taxpayer without substantial restrictions, even if the taxpayer has not physically received it. For example, a check mailed in December is considered constructively received in that tax year, even if it is not deposited until January. The constructive receipt doctrine prevents taxpayers from deferring income by simply delaying collection.

Question 27

What is Cost Basis?

Accepted Answer

Cost basis is the original purchase price of an asset plus any additional costs incurred to acquire, improve, or maintain it, used to determine gain or loss when the asset is sold. For real estate, cost basis includes the purchase price, closing costs, and the cost of capital improvements, minus any depreciation taken. Accurate cost basis tracking is essential for calculating capital gains tax and depreciation deductions.

Question 28

What is Cost Recovery?

Accepted Answer

Cost recovery is the process of recouping the cost of a business or investment asset through depreciation, amortization, or other deduction methods allowed by the tax code. The Modified Accelerated Cost Recovery System (MACRS) is the primary cost recovery method used in the United States for tangible property. Cost recovery deductions reduce taxable income and are a fundamental component of real estate and business tax planning.

Question 29

What is Cost Segregation?

Accepted Answer

Cost segregation is an engineering-based tax strategy that accelerates depreciation deductions on commercial and investment real estate by reclassifying building components into shorter-life asset categories. A cost segregation study identifies assets that can be depreciated over 5, 7, or 15 years instead of the standard 27.5 or 39 years, significantly increasing first-year deductions. When combined with bonus depreciation, cost segregation can generate substantial tax savings in the year a property is acquired or improved.

Question 30

What is Deferred Compensation?

Accepted Answer

Deferred compensation is an arrangement in which a portion of an employee's or business owner's compensation is paid out at a later date, typically after retirement. Deferred compensation plans can be either qualified (such as 401(k) plans) or nonqualified, each with different tax treatment and regulatory requirements. Properly structured deferred compensation arrangements allow participants to defer income recognition until the year of actual receipt.

Question 31

What is a Defined Benefit Plan?

Accepted Answer

A defined benefit plan is a retirement plan in which the employer promises a specific monthly benefit upon retirement, calculated using a formula based on factors like salary history and years of service. Contributions to defined benefit plans are tax-deductible to the employer and can be substantially larger than contributions to defined contribution plans. These plans are especially attractive to high-income business owners who want to shelter significant amounts of income from current taxation.

Question 32

What is Depreciation?

Accepted Answer

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life as defined by the IRS. Depreciation allows property owners and businesses to deduct the cost of assets such as buildings, equipment, and vehicles over time, reducing taxable income each year. Real estate investors commonly depreciate residential rental property over 27.5 years and nonresidential property over 39 years under MACRS.

Question 33

What is Depreciation Recapture?

Accepted Answer

Depreciation recapture is the tax assessed when a taxpayer sells a depreciated asset for more than its adjusted basis, effectively recapturing the tax benefit of prior depreciation deductions. For real estate, unrecaptured Section 1250 gain is taxed at a maximum rate of 25%, while Section 1245 property recapture is taxed as ordinary income. Depreciation recapture is an important consideration in exit planning and 1031 exchange strategies.

Question 34

What is a Disregarded Entity?

Accepted Answer

A disregarded entity is a business entity that is not recognized as separate from its owner for federal income tax purposes. The most common example is a single-member LLC, which is treated as a sole proprietorship (or a branch of its owner) unless it elects to be taxed as a corporation. While disregarded for income tax, these entities still provide liability protection and may be recognized for other tax purposes such as employment taxes.

Question 35

What is a Distribution?

Accepted Answer

A distribution is a payment of cash or property from a business entity, retirement account, or trust to its owner, beneficiary, or shareholder. The tax treatment of distributions varies depending on the source -- for example, S-Corporation distributions from accumulated earnings are generally not subject to self-employment tax, while retirement plan distributions may be taxed as ordinary income. Understanding distribution rules is critical for minimizing tax on business profits and retirement withdrawals.

Question 36

What is Domicile?

Accepted Answer

Domicile is the state or jurisdiction where a taxpayer maintains their permanent legal residence and intends to return, even if they are temporarily living elsewhere. Domicile determines a taxpayer's state income tax obligations and can have significant consequences for high-income individuals living in or moving between high-tax and low-tax states. Changing domicile requires demonstrating intent and taking affirmative steps such as updating voter registration, driver's license, and estate planning documents.

Question 37

What is Double Taxation?

Accepted Answer

Double taxation is the taxation of the same income at two levels, most commonly referring to the corporate tax structure in which a C-Corporation pays income tax on its profits and shareholders pay tax again when those profits are distributed as dividends. Double taxation is one of the primary reasons business owners choose pass-through entity structures such as S-Corporations, partnerships, and LLCs. Strategic entity structuring can minimize or eliminate the impact of double taxation.

Question 38

What is Earned Income?

Accepted Answer

Earned income is compensation received for personal services, including wages, salaries, tips, commissions, bonuses, and net self-employment income. Earned income is subject to both income tax and self-employment or payroll taxes and is distinguished from investment income and passive income. The amount of earned income affects eligibility for various credits and deductions, including IRA contributions and the Earned Income Tax Credit.

Question 39

What is the Economic Substance Doctrine?

Accepted Answer

The economic substance doctrine is a judicial doctrine requiring that a transaction have both a meaningful economic purpose beyond tax avoidance and a genuine change in the taxpayer's economic position. Codified in IRC Section 7701(o), transactions lacking economic substance may be disallowed by the IRS, and taxpayers may face a 20% to 40% accuracy-related penalty. All tax planning strategies should be structured with genuine business purposes to withstand economic substance scrutiny.

Question 40

What is the Effective Tax Rate?

Accepted Answer

The effective tax rate is the actual percentage of total income paid in taxes, calculated by dividing total tax liability by total taxable or gross income. The effective tax rate is typically lower than a taxpayer's marginal tax rate because of the progressive rate structure, deductions, and credits. Tracking effective tax rate is a key measure of how well a tax planning strategy is performing.

Question 41

What is an EIN?

Accepted Answer

An EIN (Employer Identification Number) is a unique nine-digit number assigned by the IRS to identify a business entity for tax reporting purposes, similar to a Social Security number for an individual. An EIN is required for entities that have employees, operate as corporations or partnerships, or file certain tax returns. Business owners typically obtain an EIN when forming a new entity or opening a business bank account.

Question 42

What is Entity Structuring?

Accepted Answer

Entity structuring is the process of selecting and organizing the legal structure of a business to optimize tax efficiency, liability protection, and operational flexibility. Common structures include sole proprietorships, LLCs, S-Corporations, C-Corporations, and partnerships, each with different tax implications and benefits. Strategic entity structuring is one of the most impactful tax planning decisions a business owner can make.

Question 43

What are Estimated Tax Payments?

Accepted Answer

Estimated tax payments are quarterly tax payments made to the IRS and state tax agencies by taxpayers who do not have sufficient taxes withheld from their income, including self-employed individuals, business owners, and investors. Estimated payments are due on April 15, June 15, September 15, and January 15 of the following year. Failure to make adequate estimated payments can result in underpayment penalties under IRC Section 6654.

Question 44

What is Estimated Useful Life?

Accepted Answer

Estimated useful life is the expected period over which a depreciable asset is anticipated to be economically productive and in use by the taxpayer. The IRS assigns specific useful life periods to different asset classes under MACRS, such as 5 years for vehicles, 7 years for office furniture, and 27.5 or 39 years for real property. Cost segregation studies identify asset components with shorter useful lives to accelerate depreciation deductions.

Question 45

What is an Exclusion?

Accepted Answer

An exclusion is an amount of income that is specifically exempt from taxation under the Internal Revenue Code. Common exclusions include the Section 121 exclusion for gain on the sale of a primary residence, gifts, life insurance proceeds, and certain foreign earned income. Exclusions reduce gross income and are distinct from deductions, which reduce taxable income after gross income is calculated.

Question 46

What is Fair Market Value?

Accepted Answer

Fair market value (FMV) is the price at which property would change hands between a willing buyer and a willing seller, neither being under compulsion and both having reasonable knowledge of relevant facts. FMV is used to determine values for gift and estate tax purposes, charitable contributions, property exchanges, and casualty loss deductions. Appraisals from qualified professionals are often required to substantiate fair market value for tax purposes.

Question 47

What is FICA?

Accepted Answer

FICA (Federal Insurance Contributions Act) is the federal payroll tax that funds Social Security and Medicare programs, paid jointly by employers and employees. The Social Security portion is 6.2% each (12.4% total) on wages up to the annual wage base, and the Medicare portion is 1.45% each (2.9% total) with no cap. High earners pay an additional 0.9% Medicare surtax on wages exceeding $200,000 (single) or $250,000 (married filing jointly).

Question 48

What is Filing Status?

Accepted Answer

Filing status is the classification used on a tax return that determines the taxpayer's standard deduction amount, tax bracket thresholds, and eligibility for certain credits and deductions. The five filing statuses are Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse. Choosing the optimal filing status is one of the most fundamental tax planning decisions for individual taxpayers.

Question 49

What is a Fiscal Year?

Accepted Answer

A fiscal year is a 12-month accounting period used for financial reporting and tax filing that does not follow the standard calendar year (January 1 through December 31). Businesses may elect a fiscal year that aligns with their natural business cycle, though S-Corporations, personal service corporations, and certain partnerships face restrictions. A fiscal year end is established when the entity files its first tax return.

Question 50

What is Form 1040?

Accepted Answer

Form 1040 is the primary individual income tax return filed with the IRS by U.S. taxpayers to report annual income, claim deductions and credits, and calculate tax liability. Form 1040 is accompanied by various schedules and attachments, including Schedule A for itemized deductions, Schedule C for business income, and Schedule E for rental and partnership income. Most individual taxpayers must file Form 1040 by April 15 of the year following the tax year.

Question 51

What is Form 1065?

Accepted Answer

Form 1065 is the annual information return filed by partnerships and multi-member LLCs to report income, deductions, gains, and losses to the IRS. Form 1065 itself does not calculate a tax liability -- instead, the partnership's income and deductions flow through to the individual partners via Schedule K-1. Form 1065 is due on March 15 of the year following the tax year, with a six-month extension available.

Question 52

What is Form 1120-S?

Accepted Answer

Form 1120-S is the annual income tax return filed by S-Corporations to report income, deductions, and credits to the IRS. Like a partnership return, the S-Corporation's income flows through to shareholders via Schedule K-1 and is reported on their individual returns. Form 1120-S is due on March 15 of the year following the tax year, and late filing can result in significant penalties.

Question 53

What is Form 3115?

Accepted Answer

Form 3115 is the Application for Change in Accounting Method, filed with the IRS to request permission to change how a taxpayer accounts for income, expenses, or depreciation. Form 3115 is commonly used in cost segregation strategies to retroactively reclassify building components and claim catch-up depreciation in a single year via a Section 481(a) adjustment. This form allows taxpayers to capture previously unclaimed depreciation without amending prior-year returns.

Question 54

What are Fringe Benefits?

Accepted Answer

Fringe benefits are non-cash compensation provided by an employer to employees, which may be excluded from the employee's taxable income if they qualify under specific IRC provisions. Common tax-free fringe benefits include health insurance, retirement plan contributions, group-term life insurance (up to $50,000), and commuter benefits. Business owners who operate as C-Corporations or use accountable plans can deduct fringe benefit costs while providing tax-free value to participants.

Question 55

What is a General Partner?

Accepted Answer

A general partner is a partner in a partnership who has unlimited personal liability for the debts and obligations of the partnership and typically has management authority. General partners report their share of partnership income on their personal tax returns and are subject to self-employment tax on that income. In limited partnerships, at least one general partner is required, while limited partners generally have liability limited to their investment.

Question 56

What is Goodwill?

Accepted Answer

Goodwill is an intangible asset representing the premium paid for a business above the fair market value of its identifiable net assets, reflecting factors such as brand reputation, customer relationships, and workforce quality. For tax purposes, goodwill acquired in a business purchase is amortizable over 15 years under IRC Section 197. The allocation of purchase price to goodwill versus other asset categories can significantly impact the buyer's depreciation and amortization deductions.

Question 57

What is a Grantor Trust?

Accepted Answer

A grantor trust is an irrevocable trust in which the grantor retains certain powers or interests that cause the trust's income to be taxed to the grantor rather than to the trust. Common grantor trust triggers include the power to revoke the trust, borrow without adequate security, or substitute assets. Grantor trusts are widely used in estate planning because assets can grow outside the grantor's taxable estate while the grantor pays the income tax, effectively making a tax-free gift to the trust beneficiaries.

Question 58

What is Gross Income?

Accepted Answer

Gross income is the total of all income received by a taxpayer from all sources before any deductions, exemptions, or adjustments. Gross income includes wages, business income, rental income, investment income, retirement distributions, and most other forms of economic benefit. IRC Section 61 defines gross income broadly as all income from whatever source derived, making it the broadest measure of income in the tax code.

Question 59

What is the Half-Year Convention?

Accepted Answer

The half-year convention is a MACRS depreciation rule that treats all property placed in service during the year as if it were placed in service at the midpoint of the year, regardless of the actual date. Under the half-year convention, taxpayers receive one-half year of depreciation in the first year and one-half year in the final year of the recovery period. If more than 40% of depreciable property is placed in service in the last quarter, the mid-quarter convention applies instead.

Question 60

What is a Holding Company?

Accepted Answer

A holding company is an entity formed primarily to hold and manage ownership interests in other companies, real estate, or investments, rather than to conduct active business operations. Holding companies can provide asset protection, centralized management, and tax planning benefits, including the ability to consolidate income and losses across multiple entities. Real estate investors commonly use holding companies to separate properties and isolate liability risk.

Question 61

What is the Home Office Deduction?

Accepted Answer

The home office deduction is a tax deduction available to self-employed individuals and certain employees who use a portion of their home regularly and exclusively for business purposes. The deduction can be calculated using the regular method (based on actual expenses and square footage percentage) or the simplified method ($5 per square foot, up to 300 square feet). Home office deductions reduce both income tax and self-employment tax for qualifying taxpayers.

Question 62

What is an Installment Sale?

Accepted Answer

An installment sale is a sale of property in which at least one payment is received after the tax year of the sale, allowing the seller to spread the recognition of gain over the period payments are received. Under IRC Section 453, installment reporting defers capital gains tax by prorating the gain across each payment based on the gross profit ratio. Installment sales are commonly used in real estate and business sales to manage tax liability and cash flow.

Question 63

What is Investment Interest Expense?

Accepted Answer

Investment interest expense is interest paid on money borrowed to purchase or hold investment property, such as margin interest on a brokerage account. Under IRC Section 163(d), the deduction for investment interest expense is limited to net investment income for the year, with any excess carried forward to future years. Taxpayers can elect to treat qualified dividends and long-term capital gains as investment income to increase the deduction, but those amounts will then be taxed at ordinary rates.

Question 64

What is the IRC?

Accepted Answer

The IRC (Internal Revenue Code) is the comprehensive body of federal tax law enacted by Congress and codified as Title 26 of the United States Code. The IRC establishes rules for income tax, estate and gift tax, excise taxes, and tax procedure, and is the primary legal authority for all federal tax obligations. Tax professionals reference specific IRC sections -- such as Section 179, Section 199A, and Section 1031 -- when developing and implementing tax planning strategies.

Tax Glossary -- 100+ Tax Terms Explained

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