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tax certificate.An instrument issued to the buyer of property at a tax sale, certifying the sale and entitling the buyer to a tax deed and possession of the property upon the expiration of the redemption period. • If the property is redeemed, the tax certificate is voided. See REDEMPTION PERIOD; tax sale under SALE. Cf.…

tax bracket.A categorized level of income subject to a particular tax rate under federal or state law . [Cases: Internal Revenue 3545–3552; Taxation 1061–1065. C.J.S. Internal Revenue §§ 331–333, 335, 358–361, 797; Taxation § 1698.] [Blacks Law 8th]

tax-benefit rule.The principle that if a taxpayer recovers a loss or expense that was deducted in a previous year, the recovery must be included in the current year’s gross income to the extent that it was previously deducted. — Also termed tax-benefit doctrine. [Cases: Internal Revenue 3089, 3138. C.J.S. Internal Revenue § 78.] [Blacks Law…

tax basis.See BASIS(2). [Blacks Law 8th]

tax base.The total property, income, or wealth subject to taxation in a given jurisdiction; the aggregate value of the property being taxed by a particular tax. Cf. BASIS(2). [Blacks Law 8th]

tax avoidance.The act of taking advantage of legally available tax-planning opportunities in order to minimize one’s tax liability. Cf. TAX EVASION. [Cases: Internal Revenue 3056–3058; Taxation 108. C.J.S. Internal Revenue §§ 3, 14–16; Taxation § 88.] [Blacks Law 8th]

tax audit.See AUDIT. [Blacks Law 8th]

taxation of costs.The process of fixing the amount of litigation-related expenses that a prevailing party is entitled to be awarded. [Blacks Law 8th]

The taxation of an entity’s owners for the entity’s income without taxing the entity itself. • Partnerships and S corporations are taxed under this method. So are limited liability companies and limited liability partnerships unless they elect to be taxed as corporations by “checking the box” on their income tax returns. The election is made…

A tax system in which no person or class of persons in the taxing district — whether it be a state, city, or county is taxed at a different rate from others in the same district on the same value or thing. [Cases: Taxation 39. C.J.S. Taxation § 26.] [Blacks Law 8th]