Understanding Basic Tax TermsWritten by Ryan Fyfe
If your like many, you don’t always understand what people are talking about when it comes to Taxes. It’s important to know main tax terminology, especially when tax season comes around. Knowing basics will make tax season less of a hassle for you, and maybe even save you some money. There are hundreds of terms; Below are some of most important:Tax Form A Tax Form is form that is filled out and submitted to your government to report all of your tax information for past year. Audit An audit refers to an unbiased examination and evaluation of financial statements of an individual or organization such as a business. Audit’s are performed for purpose of ensuring that accounting records are fair and consistent, and are following guidelines laid out for individual or organization. Capital Gain Capital Gain refers to amount of money made on Capital during a given tax period. For example if you own a house, and over past year value of your house increased by twenty thousand dollars, you would have to claim this twenty thousand dollars as a capital gain in your income taxes.
| | Understanding Basic Finance TermsWritten by Ryan Fyfe
If your like many, you don’t always understand what people are talking about when it comes to loans. Without understanding basic terminology when it comes to loans you just aren’t setting yourself up right to make an educated decision when it comes to applying for a loan. There are hundreds of terms; Below are some of most important:Assets Assets can be described as anything that holds value. Assets can be all types of things from cars to houses. Assets can be used in helping to build credit. For example if you are applying for a house loan, you might use your car as an asset, to show that if you default on a payment, that you have assets to fall back upon such as your car. Capital Capital can be a bit of tricky term as it can be used in several different situations to do with finances. Capital can be described as assets that are available for use towards creating further assets; it can also apply to cash in reserve, savings, property, or goods. Debt Debt is amount of money or something of value that is borrowed from a person referred to as a debtor. Usually a debt that is borrowed will carry some type of penalty along with payback such as an interest, or service.
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