Indemnity is a contractual obligation of one party (indemnifier) to compensate the loss occurred to the other party due to the act of the indemnitor or any other party. The duty to indemnify is usually, but not always, coextensive with the contractual duty to "hold harmless" or "save harmless". In contrast, a guarantee is an obligation of one party assuring the other party that guarantor will perform the promise of the third party if it defaults.
Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and credits. The difference between deductions, exemptions and credits is that deductions and exemptions both reduce taxable income, while credits reduce tax.
Under United States tax law, itemized deductions are eligible expenses that individual taxpayers can claim on federal income tax returns and which decrease their taxable income, and is claimable in place of a standard deduction, if available.
Income taxes in the United States are imposed by the federal, most state, and many local governments. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. An alternative tax applies at the federal and some state levels.
Rules concerning income tax and gambling vary internationally.
In Mazzei v. Commissioner, 61 T.C. 497 (1974), the United States Tax Court ruled that a taxpayer could not consider $20,000 lost to a fraudulent counterfeiting scheme as a basis for a deduction under section 165(c)(3) of the Internal Revenue Code ("Code").
Zaninovich v. Commissioner, 616 F.2d 429, is a United States court case about the deductibility of advance payments for tax purposes.
Arrowsmith v. Commissioner, 344 U.S. 6 (1952), is a United States Supreme Court case regarding taxation. The case involves taxpayers who liquidated a corporation in 1937. The taxpayers (properly) reported the income from the liquidation as long-term capital gains, thus obtaining a preferential tax rate. Subsequent to the liquidation in 1944, the taxpayers were required to pay a judgment arising from the affairs of the liquidated corporation. The taxpayers classified this payment as an ordinary business loss, which would allow them to take a greater deduction for the loss than would be permitted for a capital loss.
Pevsner v. Commissioner, 628 F.2d 467 is a United States federal income tax case before the Fifth Circuit. It dealt with the issue of whether clothes purchased solely for use at work could be treated as a business expense deduction on a taxpayer's return.
Commissioner v. Boylston Market Association, 131 F.2d 966 was a taxation case decided by the United States Court of Appeals for the First Circuit.
Estate of Rockefeller v. Commissioner, 762 F.2d 264, was a case in which the United States Court of Appeals for the Second Circuit held that section 162(a) of the Internal Revenue Code only allows deductions against income for expenses that occur while carrying on a trade or business.
Section 162(a) of the Internal Revenue Code, is part of United States taxation law. It concerns deductions for business expenses. It is one of the most important provisions in the Code, because it is the most widely used authority for deductions. If an expense is not deductible, then Congress considers the cost to be a consumption expense. Section 162(a) requires six different elements in order to claim a deduction. It must be an
Gold Coast Hotel & Casino v. United States, 158 F.3d 484, was a court case that addressed whether a casino, using the accrual method of accounting, could deduct the value of slot club points earned by slot club members in the tax year in which the members accumulated the minimum points required to redeem a prize, or whether the casino had to wait to deduct the value of the slot club points until the members actually redeemed them.
Grynberg v. Commissioner, 83 T.C. 255 (1984) was a case in which the United States Tax Court held that one taxpayer's prepaid business expenses were not ordinary and necessary expenses of the years in which they were made, and therefore the prepayments were not tax deductible. Taxpayers in the United States often seek to maximize their income and decrease their tax liability by prepaying deductible expenses and taking a deduction earlier rather than in a later tax year.
Haverly v. United States, 513 F.2d 224 is a United States income tax case.
Davis v. United States, 495 U.S. 472 (1990), was a case decided by the United States Supreme Court. It concerned claims made by parents of two missionaries of The Church of Jesus Christ of Latter-day Saints, that their monetary contributions toward their sons' mission expenses constituted a "charitable contribution" under provisions of Treas. Reg. § 1.170A-1(g) (1989), a position that lower courts had rejected. In a unanimous decision, the Court ruled that these contributions could not be seen as "charitable contributions" under provisions of that statute.
Sibla v. Commissioner, 611 F.2d 1260, was an important income tax case regarding 26 U.S.C.S. § 162(a).
Early v. Commissioner, 445 F.2d 166 was a United States income tax case, holding that an agreement between taxpayers and heirs of decedent—pursuant to which taxpayers received a joint life interest in income from the trust estate in return for the surrender of stock allegedly given to them by the decedent—was actually a compromise of the taxpayers' disputed right to the stock, and since they claimed the stock as donees, they were to be treated as having acquired their life estate in that capacity for federal income tax purposes.
Wills v. Commissioner, 411 F.2d 537 was a United States taxation case decided by the United States Court of Appeals for the Ninth Circuit in 1969.
