As with all
professions, we in the tax and accounting arena have our own jargon. I
have also adopted several other abbreviations and acronyms in order to save time
and space when writing and speaking. If there are other terms that should
be included here, please
let me know.
= Technique to defer taxation
of gains on sales of certain assets (most often real estate) by replacing with
similar assets within 180 days. aka Like Kind Exchange.
Above The Line = Shorthand by tax pros to
describe anything (income or expense) that affects the calculation of AGI.
In most cases, a deduction claimed above the line will reduce taxes more than
one of the same amount claimed below the line.
AGI = Adjusted Gross Income = the bottom line
on Page 1 of the 1040. Used by our rulers to decide who is evil rich or
not. Most penalties on success (Means Testing), such as reduced
deductions, credits and exemptions are based on AGI.
AMT = Alternative
Minimum Tax. A special tax originally intended to nail evil rich people
who used too many tax loopholes. Currently hitting millions more of middle
income individuals each year.
Below the Line = Deductions claimed after
AGI, normally on Schedule A and Page 2 of the 1040. These normally do not
save as much in taxes as deductions above the line.
Blog = Abbreviation for Web Log, which is a
series of postings on the world wide web.
DC = Washington, DC = Disconnected Fantasy
Land where our rulers reside and decide the fates of us commoners.
Evil Rich =Those people who our rulers have decided are not
worthy of certain tax breaks. Defined by AGI. Different income
levels for each area of the tax code. For Social Security recipients, a
single person with annual income over $25,000 is considered by our rulers to be
evil rich and thus required to pay income tax on from 50% to 85% of his/her SS benefits.
This is $32,000 for married couples.
GIGO = Garbage In,
Garbage Out = The results of a project or calculation can only be as good as the
information provided. For example, tax returns can only be as accurate as
the data provided to the preparer.
Internal Revenue Service. The
agency authorized by our rulers in DC to ignore all constitutional protections
and use whatever means possible to squeeze as much money out of the people to be
used for income redistribution and our rulers' other pet projects.
Left Coast =
The states on
the West side of the continental United States (California, Oregon and
Washington), which coincidentally are also dominated politically by Socialists.
Marriage Penalty = Various technicalities of
the tax code that require married couples to pay several thousand dollars in
taxes than they would have to pay if they were single and filing two separate
tax returns. Estimated at $50 billion per year in extra income for our
rulers in DC, which is why they always claim they can't afford to eliminate it.
Rulers = Elected officials who believe it is
their function in life to dictate to the rest of us how we are to perform every
single aspect of our business and personal lives, while exempting themselves
from those same rules.
= Election under the IRC to
expense newly acquired business assets in the first year rather than depreciate
them over several years. More
Security Administration. The government agency that keeps all records
regarding SS taxes paid in and benefits to be paid out. Dealing with SSA
personnel makes dealing with IRS personnel seem like a walk in the park.
SSA employees set the bar for incompetence.
SWAG = Scientific Wild Ass Guess = Numbers
that have a slightly higher chance of being accurate than WAGs due to the use of
some basic calculation or mathematical theory.
WAG = Wild Ass Guess = Numbers pulled out of