Tax Definitions and Terms (G, H)

Gift Tax: Tax on gifts that are in excess of a set annual exclusion.

Goodwill: The total purchase price of a business minus it's liabilities

Gross Income: The total amount of income before subtracting deductions and exclusions.

Gross Receipts: The total amount of revenue made by a business before deducting expenses and the costs of goods sold.

Head Of Household: The person designated to be the one in charge of supporting, managing, and or speaking for the family. The head of household maintains the household and is allowed to file his or her taxes based on head of household rates.

Hobby Losses: Losses derived from activities that may or may not be conducted for profit and cannot be used to offset other taxable income.

Holding Period: The length of time that an asset is held, from the time it is purchased until it is sold or traded.

Home: A home is a house, condominium, apartment, or other dwelling places where an individual or a family lives.

Home Equity Loan: A loan given against the equity in a home in return for a note and deed of trust placed on the property. Interest on the amount borrowed, up to $100,000.00 is tax deductible.

Home Office: A home, or portion of a home, that is used as a principal place of business and is allowed to be written off as a deduction when filing taxes.

Finance Topic of the Month: Federal Deposit Insurance Corporation (FDIC)