| As a courtesy to our clients, we have compiled a comprehensive list of common tax terms and definitions for quick reference. | Tax Lingo Troubles? |
Accrual method of accounting |
A business method of accounting requiring income to be reported when earned and expenses to be deducted when incurred. However, deductions generally may not be claimed until economic performance has occurred. |
| Term | Definition |
|---|---|
| Generally Accepted Accounting Principles |
The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. |
| Gift tax |
Gifts in excess of an $13,000-per-donee (in 2009) annual exclusion are subject to gift tax, but the tax may be offset by a gift tax credit. |
| Grantor trust rules |
Tax rules that tax the grantor of a trust on the trust income. |
| Gross income |
The total amount of income received from all sources before exclusions and deductions. |
| Gross receipts |
Total business receipts reported on Schedule C or Schedule C-EZ before deducting adjustments for returns and allowances and cost of goods sold. |
| Group-term life insurance |
Employees are not taxed on up to $50,000 of group-term coverage. |