MATERIAL PARTICIPATION TEST
A criteria that determines if a taxpayer is a material participant in a business venture. This test will tell whether the income received by a taxpayer is active or passive. Also, if the individual does partake in business’ activities regularly and continuously, then he or she materially participates in the business. It has seven tests but at least one test has be passed in order to consider a taxpayer as a material participant in the business activity.
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Housing Bubble
A run-up in housing prices fueled by demand, speculation and the belief that recent history is an infallible forecast of the future. Housing bubble ...
Low Exercise Price Option - LEPO
A call option for investors that has a price of 1 cent with an agreement to buy 1000 shares. This cannot be executed until its expiry. It works lik ...
Callable Security
A security with an enclosed call provision that gives the person who issues to redeem or repurchase the security by a particular period. Since the ...
Shadowing
Shadowing is the creation of values for variables that are not dependent strictly to market value. This means that these variable have market value ...
Pass-Through Rate
Pass-through rate is the net
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A Guide to Your Personal Income Tax: Steps to Take before April 15
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