What is a trust fund?

A trust fund is a financial tool that owns and manages assets for the benefit of another person or organization, called a beneficiary. The initial assets of the fund are provided by a donor or donor, and a manager or team of managers administers the funds in accordance with that person’s instructions. The beneficiary receives […]

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What is a testamentary trust?

A testamentary trust is a type of trust that becomes effective when the testator dies. This type of trust is often created so that minor children or young adults have money, such as life insurance funds, distributed to them when a parent dies. It is usually part of the tester’s will. A testamentary trust involves […]

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What is a transaction date?

A transaction date is the actual date that a specific type of financial transaction took place. The nature of the transaction may have to do with a purchase or sale date, or be associated with the date on which the transaction actually took place, even if the purchase or sale was initiated at an earlier […]

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What is a term loan?

A term loan is a monetary loan that is repaid in regular payments over a specified period of time. Term loans usually last between one and ten years, but in some cases they can last up to 30 years. A term loan usually involves a non-fixed interest rate that will add an additional balance payable. […]

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What is a third party collection?

Third party collection is a form of debt collection performed by a third party, person or entity that was not a party to the initial transaction or contract. Creditors may turn to third parties when their own collection efforts are not effective. The activities of third party debt collectors are limited by law in many […]

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What is a telegraphic transfer?

Telegraphic transfer is a means of transferring funds from one place to another. Originally, telegraphic transfers used the telegraph as a means of transferring money between a point of origin and a point of termination. Today, the process of transferring money between two parties no longer involves the telegraph, but the use of the term […]

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What is a tax exemption?

A tax exemption is a reduction or elimination of taxes normally imposed on individuals and organizations by state and federal governments. To be tax exempt, an organization must meet certain criteria specifically defined by the United States Internal Revenue Code (IRC). Many organizations that are tax-exempt under the IRC are charities, churches, and other organizations […]

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What is a tax loss report?

A tax loss carryforward is similar to a tax loss carryforward. The main difference is that a year in which a loss is observed is not carried forward to a later year. Instead, the tax loss carryforward applies to a previous year in which you paid a lot in taxes and allows you to reduce […]

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What is a tax return?

An income tax return is a document filed with state or federal authorities that declares a taxpayer’s responsibility to pay taxes, based on their annual income. There are three possible outcomes when filing a tax return: the taxpayer was charged too much or too little for his income, or he was charged the correct amount. […]

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What is a tax benefit?

A tax benefit can be a means by which individuals or companies reduce the amount of taxes owed. There are several types of tax benefits. For people, especially in the middle class and above, having to pay interest on a home mortgage is considered a tax benefit. Companies can take on debt in a variety […]

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What is a T-Bill?

A Treasury Bond, often abbreviated to a T-Bill, is a type of bond issued by the United States Treasury through the Bureau of Public Debt. Along with a variety of other bonds, T-Bills are used to finance the United States government by borrowing money from citizens. Investors buy T-Bills when they become available, and when […]

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What is a tax audit?

A tax audit is an investigation into the background of tax returns filed by an individual or company with a tax agency. The idea of ​​a tax audit often evokes feelings of anxiety even in people who believe their tax documents are perfectly in order. While it is true that it can be called a […]

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