Glossary

Accordion Linked List

• Bad Debt

  

  A loss from the worthlessness of a debt.

• Balance Due

  

  The amount owed to the IRS after subtracting total tax payments from the total tax liability on a tax return.

• Barter Exchange

  

  Any person or an organization with members or clients that contract with each other (or with the barter exchange), who jointly trades or barters property or services.

• Bartering

  

  An exchange of property or services.

• Basis

  

  The amount of an individual's investment in property for tax purposes.

• Beneficiary

  

  A person designated to receive all or a portion of a benefit after the owner dies.

• Boot

  

  Cash or fair market value of unlike property received in an exchange.

• Business Bad Debt

  

  A business bad debt that is either of the following: created or acquired in the taxpayer's trade or business or closely related to the taxpayer's trade or business when it became partly or totally worthless (a debt is closely related to the taxpayer's trade or business if the taxpayer's primary motive for incurring the debt is business related).

• Business Books and Records

  

  The intangible value of technical manuals; training manuals or programs; data files; accounting or inventory control systems; customer lists; subscription lists; insurance expirations; patient or client files; and lists of newspaper, magazine, radio, and television advertisers.

• Business Expenses

  

  Costs that do not have to be capitalized or included in the cost of goods sold. To be deductible, business expenses must be both ordinary and necessary.