Unemployment Compensation refers to a government-provided financial assistance program that offers temporary income support to individuals who have lost their jobs through no fault of their own. This compensation is typically funded through taxes levied on employers and is administered at both state and federal levels. Eligibility requirements may vary by state but generally include...

Unfiled Taxes refer to tax returns that an individual or business has not submitted to the tax authorities for a given tax year. This may occur for various reasons, including oversight, financial difficulties, or disputes regarding the tax owed. Failure to file taxes can result in penalties, interest on unpaid taxes, and potential legal action...

Unified Credit refers to a tax credit in the United States that allows taxpayers to offset the federal estate and gift tax liability. It is a key component of the estate planning process and enables individuals to transfer a certain amount of wealth without incurring taxes. The unified credit is linked to the lifetime exemption...

Unified Tax Credit refers to a tax credit that combines the lifetime gift tax exemption and the estate tax exemption into a single amount, allowing individuals to transfer wealth without incurring gift or estate taxes up to a specified limit. This credit is particularly relevant in estate planning, as it ensures that individuals can pass...

Unrecaptured Section 1250 Gain refers to the portion of gain from the sale of depreciable real property that is subject to a maximum tax rate of 25% when the property is sold for more than its adjusted basis. This gain arises from the depreciation deductions taken on the property, specifically for residential rental property and...

Unrelated Business Taxable Income (UBTI) refers to the income generated by a tax-exempt organization from activities that are not substantially related to its exempt purpose. This type of income is subject to taxation under the Internal Revenue Code. Examples include income from a business that an exempt organization operates, such as a university running a...

Use of Crummey Powers in Trusts The Use of Crummey Powers in Trusts refers to a specific provision that allows beneficiaries of a trust to withdraw contributions made to the trust for a limited period of time. This mechanism is named after the case Crummey v. Commissioner and is often utilized to qualify gifts for...

Use of Promissory Notes in Estate Planning Promissory notes are written promises to pay a specified amount of money to a designated person or entity at a future date or on demand. In the context of estate planning, they can be utilized as a tool for transferring wealth, managing liquidity, and ensuring that beneficiaries receive...

Use of Tax-Advantaged Accounts The Use of Tax-Advantaged Accounts refers to the strategy of utilizing specific financial accounts that offer tax benefits to encourage savings and investment. These accounts are designed to reduce taxable income or defer taxes on earnings, allowing individuals to maximize their savings for retirement, education, healthcare, or other specific purposes. Examples...

Use Tax is a tax imposed on the purchase of goods that are used, stored, or otherwise consumed in a state where the buyer did not pay sales tax at the time of purchase. It is designed to ensure that local businesses are not disadvantaged compared to out-of-state vendors who may not charge sales tax....