• Glossary

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    Click the first letter of the term you're searching for to get an easy-to-understand explanation.

  • Like-Kind Properties -

    Properties of the same nature or character, even if they differ in grade or quality.

    Limited Liability Company -

    An entity formed under state law by filing articles of organization as an LLC. Unlike a partnership, none of the members of an LLC are personally liable for its debts. An LLC may be classified for federal income tax purposes as a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in the Treasury Regulations, section 301.7701-3.

    Limited Liability Partnership (LLP) -

    A partnership formed under a state limited liability partnership law. Generally, a partner in an LLP is not personally liable for the debts of the LLP or any other partner, nor is a partner liable for the acts or omissions of any other partner, solely by reason of being a partner.

    Limited Partnership -

    A partnership formed under a state's limited partnership law and composed of at least one general partner and one or more limited partners.

    Listed Property -

    Items specifically named (listed) in IRS code as subject to special rules for depreciation. Listed property includes passenger automobiles and any other property used for transportation; property of a type used generally for entertainment, recreation, or amusement; computers and their peripheral equipment (unless used only at a regular business establishment and owned or leased by the person operating the establishment); and cellular telephones or similar telecommunications equipment.

    Loan Origination Fees -

    The costs incurred to obtain a loan.

    Long-Term Holding Period -

    A period of more than one year.

    Lump-Sum Distribution -

    The distribution or payment made in one tax year of a plan participant's entire balance from all of the employer's qualified plans of one kind; for example, pension, profit-sharing, or stock bonus plan.

    Luxury Automobile -

    A vehicle for which the depreciation deduction is limited because of its purchase price.