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5 Cards in this Set
- Front
- Back
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What is Net Cash Flow?
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The difference between cash received and cash disbursed.
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What is a tax cost?
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If a transaction results in an increase in any tax for any period, the increase (tax cost) is a cash outflow.
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What is a deduction?
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An offset or subtraction in the calculation of taxable income.
Many business expenditures can be subtracted, or deducted, in the computation of taxable income. |
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What is a private letter ruling (PLR)?
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The IRS's written response to a taxpayer's inquiry as to how the tax law applies to a proposed transaction.
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What is an arm's-length transaction?
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A transaction occurring between unrelated parties who are dealing in their own self-interest.
-Consideration of mutual tax consequences. |
