Utilities Tax Deductions refer to the expenses incurred by a business or individual for essential services such as electricity, water, gas, and waste disposal that can be deducted from taxable income. These deductions are typically applicable to businesses that operate from a physical location where these utilities are necessary for operations. For instance, if a...

Vacation Home Tax Rules refer to the specific regulations that govern the tax treatment of properties used as vacation homes. These rules dictate how such properties are classified for tax purposes, which can affect the deductibility of expenses, rental income reporting, and capital gains taxation upon sale. In general, a vacation home is a residence...

Valuation Discounts refer to reductions applied to the value of an asset or business when estimating its worth. These discounts may arise from various factors that affect the marketability and liquidity of the asset. Common types of valuation discounts include: Minority Interest Discount: This is applied when the interest being valued does not provide control...

Valuation of Closely Held Businesses in Estates The process of determining the fair market value of a closely held business for the purposes of estate planning, tax compliance, or probate proceedings. This valuation is particularly important because closely held businesses, which are not publicly traded and typically have a limited number of shareholders, can be...

Value-Added Tax (VAT) Value-Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It is typically assessed at each stage of the supply chain, from raw materials to final retail sale, and is ultimately borne by the end consumer. Under VAT, businesses...

Virtual Currency Taxation refers to the tax treatment and regulatory framework applied to transactions involving virtual currencies, such as Bitcoin and Ethereum. Under current tax laws, virtual currencies are treated as property rather than currency. This means that when a taxpayer engages in transactions using virtual currency, they must report any capital gains or losses...

Voluntary Disclosure refers to the proactive act of a taxpayer or entity reporting information to tax authorities that is not required by law but is disclosed in order to correct inaccuracies or omissions in previous filings. This practice can involve the reporting of unreported income, correcting misclassifications, or providing additional context for transactions. By voluntarily...

Volunteer Mileage Deduction refers to the tax deduction that eligible taxpayers can claim for the mileage driven while volunteering for charitable organizations. Taxpayers can deduct a standard mileage rate set by the IRS for the miles driven in service of a qualified charity. As of 2023, the rate is 14 cents per mile. This deduction...

W-2 Employee A W-2 Employee is an individual who is employed by a company and receives a wage or salary reported on Form W-2, which is a tax document issued by the employer at the end of the year. This form details the employee's annual earnings, withheld taxes, Social Security, and Medicare contributions. As a...

W-2 Form The W-2 Form is a tax document that employers in the United States are required to complete and provide to their employees at the end of each calendar year. The form reports an employee's annual wages and the amount of taxes withheld from their paycheck. It includes details such as the employee's Social...