Pigovian Tax: Definition Purpose Calculation Examples

Pigovian Tax: Definition and Purpose A Pigovian tax is a type of tax that is designed to correct market failures caused by negative externalities. It is named after economist Arthur Pigou, who first proposed the concept in the early 20th century. The purpose of a Pigovian tax is to internalize …

Low-Income Housing Tax Credit (LITHC) Explained

What is LITHC? The Low-Income Housing Tax Credit (LITHC) is a federal tax credit program designed to incentivize the development of affordable housing for low-income individuals and families. It was established by the Tax Reform Act of 1986 and is administered by the Internal Revenue Service (IRS). Under the LITHC …

Listed Property Meaning and Examples of the Accounting Term

Listed Property Meaning and Examples Listed property includes assets such as vehicles, computers, cameras, and other equipment that can be used for both business and personal purposes. These assets are often used by small business owners and self-employed individuals. The IRS has specific guidelines for determining whether a property is …

Form 2106 Employee Business Expenses Definition and Who Can Use

What is Form 2106 Employee Business Expenses? Form 2106 Employee Business Expenses is a document used by individuals who are employees and incur expenses related to their job. These expenses can include travel, meals, entertainment, and other work-related costs. The form is used to calculate and report these expenses to …

Election: Tax Strategy and When and Why to File

Election: Tax Strategy and When to File The Importance of Timing Filing your taxes at the right time can help you optimize your tax strategy and take advantage of various benefits. Here are a few reasons why timing matters: Maximize deductions: Filing early allows you to identify and claim all …