Law Dictionary Definitions

tax-straddle rule.A rule preventing undue deferral of tax on income or conversion of ordinary income or short-term capital gain into long-term capital gain by disallowing the premature deduction of a loss on sale or disposition of one leg of a straddle position (e.g., a promise to sell offset by a promise to buy, such as…

tax situs (sI-t<>s). A state or jurisdiction that has a substantial connection with assets that are subject to taxation. [Cases: Taxation 97. C.J.S. Taxation § 153.] [Blacks Law 8th]

tax-sheltered annuity.See 403(b) plan under EMPLOYEE BENEFIT PLAN [Blacks Law 8th]

tax shelter,n. A financial operation or investment strategy (such as a partnership or real-estate investment trust) that is created primarily for the purpose of reducing or deferring income-tax payments. • The Tax Reform Act of 1986 — by restricting the deductibility of passive losses — sharply limited the effectiveness of tax shelters. — Often shortened…

tax sale.See SALE. [Blacks Law 8th]

tax roll.See ROLL(2). [Blacks Law 8th]

tax-return privilege.See PRIVILEGE(3) [Blacks Law 8th]

A return filed by each spouse separately, showing income and liability. • Unlike with a joint return, each spouse is individually liable only for taxes due on the separate return. [Cases: Internal Revenue 4481; Taxation 1079.1. C.J.S. Internal Revenue §§ 335, 637.] [Blacks Law 8th]

A return filed together by spouses. • A joint return can be filed even if only one spouse had income, but each spouse is usu. individually liable for the tax payment. [Cases: Internal Revenue 4481; Taxation 1079.1. C.J.S. Internal Revenue §§ 335, 637.] [Blacks Law 8th]

A return, such as a W-2, filed by an entity to report some economic information related to, but other than, tax liability. [Blacks Law 8th]