Foreign Investor in Real Property Tax Act of 1980

Similar financial terms

Unsterilized foreign exchange intervention
A unsterilized foreign exchange intervention is an intervention in which a central bank allows the purchase or sale of domestic currency to affect the monetary base.

Foreign Aid
The international transfer of public and private funds in the form of loans or grants from donor countries to recipient countries.

Controlled Foreign Corporation (CFC)
An offshore company which, because of ownership or voting control of U.S. persons, is treated by the IRS as a U.S. tax reporting entity. IRC 951 and 957 collectively define the CFC as one in which a U.S. person owns 10 percent or more of a foreign corporation or in which 50 percent or more of the total voting stock is owned by U.S. shareholders collectively or 10 percent or more of the voting control is owned by U.S. persons.

Hands-on investor
An investor who has a large stake in a corporation and takes an active role in its management.

Hands-off investor
An investor who has a large stake in a company, but does not wish to play an active role in the management of the corporation.

Institutional investors
Investors other than individuals, such as pension plans, banks, mutual funds, and life insurance companies. Because such investors buy large blocks of shares, they are often given substantial trading cost discounts.

Retail investors individual investors
Small investors who commit capital for their personal account.

Real option
An option involving real (as opposed to financial) assets where. Real assets include land. plant, and machinery.

After-tax real rate of return
Money after-tax rate of return minus the inflation rate.

REMIC (real estate mortgage investment conduit)
A pass-through tax entity that can hold mortgages secured by any type of real property and issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. A financing vehicle created under the Tax Reform Act of 1986.

REIT (real estate investment trust)
Real estate investment trust, which is similar to a closed-end mutual fund. REITs invest in real estate or loans secured by real estate and issue shares in such investments.

Realized return
The return that is actually earned over a given time period.

Realized compound yield
Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and rolled over until the bond matures.

Real time
A real time stock or bond quote is one that states a security's most recent offer to sell or bid (buy). A delayed quote shows the same bid and ask prices 15 minutes and sometimes 20 minutes after a trade takes place.

Real market
The bid and offer prices at which a dealer could do "size." Quotes in the brokers market may reflect not the real market, but pictures painted by dealers playing trading games.

Real interest rate
The rate of interest excluding the effect of inflation; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for inflation.

Real exchange rates
Exchange rates that have been adjusted for the inflation differential between two countries.

Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given.

Real capital
Wealth that can be represented in financial terms, such as savings account balances, financial securities, and real estate.

Real assets
Identifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a financial obligation.

Montreal Stock Exchange (MSE)
One of the four major stock exchanges in Canada.

Separation property
The property that portfolio choice can be separated into two independent tasks: (a) determination of the optimal risky portfolio, which is a purely technical problem, and (b) the personal choice of the best mix of the risky portfolio and the risk-free asset.

Property rights
Rights of individuals and companies to own and utilize property as they see fit and to receive the stream of income that their property generates.

Intellectual Property
This terms refers to all assets of a company that have an intellectual nature to them. They are often referred to as "soft" assets such as trademarks, logos, patents, software, trade secrets, brands, industrial designs, music, colors, designs, etc. They usually have intangible value unlike hard assets such as land, buildings, and equipment.

Withholding tax
The tax payable on payments such as dividends, interest, and debt repayments which are sent to foreign entities. Hence, a tax levied by the country of source on income paid.

After-tax profit margin
The ratio of net income to net sales.

Value-added tax
Value-added tax (VAT) is a method of indirect taxation whereby a tax is levied at each stage of production on the value added at that specific stage.

Two-tier tax system
A method of taxation in which the income going to shareholders is taxed twice.

Taxable transaction
Any transaction that is not tax-free to the parties involved, such as a taxable acquisition.

Taxable income
Gross income less a set of deductions such as allowances, deeds of covenants, and losses.

Taxable acquisition
A merger or consolidation that is not a tax-fee acquisition. The selling shareholders are treated as having sold their shares.

Tax-timing option
The option to sell an asset and claim a loss for tax purposes or not to sell the asset and defer the capital gains tax.

Tax-deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to be made and accumulate tax-free until they are paid out as benefits.

Tax deferral option
The feature of the U.S. Internal Revenue Code that the capital gains tax on an asset is payable only when the gain is realized by selling the asset.

Tax swap
Swapping two similar bonds to receive a tax benefit.

Tax shield
The reduction in income taxes or corporation taxes that results from taking an allowable deduction from taxable income.

Tax Reform Act of 1986
A 1986 law involving a major overhaul of the U.S. tax code.

Tax haven
A nation with a moderate level of taxation and/or liberal tax incentives for undertaking specific activities such as exporting or investing. Offshore centres are often established in so-called tax havens.

Tax free acquisition
A merger or consolidation in which (a) the acquirer's tax basis in each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and (b) each seller who receives only stock does not have to pay any tax on the gain he realizes until the shares are sold.

Tax-exempt sector
The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.

Tax differential view ( of dividend policy)
The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends.

Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back to the extent required to cover any cash deficiency of the project.

Tax books
Set of books kept by a firm's management for the IRS that follows IRS rules. The stockholder's books follow Financial Accounting Standards Board rules.

Split-rate tax system
A tax system that taxes retained earnings at a higher rate than earnings that are distributed as dividends.

Short-term tax exempts
Short-term securities issued by states, municipalities, local housing agencies, and urban renewal agencies.

Progressive tax system
A tax system wherein the average tax rate increases for some increases in income but never decreases with an increase in income.

Personal tax view (of capital structure)
The argument that the difference in personal tax rates between income from debt and income from equity eliminates the disadvantage from the double taxation (corporate and personal) of income from equity.

Marginal tax rate
The tax rate that would have to be paid on any additional dollars of taxable income earned.

Limited-tax general obligation bond
A general obligation bond that is limited as to revenue sources.

Tax Breaks
Tax Breaks or "incentives" are advocated by the high tech industry - especially on stock options - as one way to help stem the brain drain. Another form of break is an investment tax credit to encourage investment or an R&D credit to encourage companies to undertake more R&D. It is a means for governments to stimulate growth in certain economic activities.

Before-tax profit margin
The ratio of net income before taxes to net sales.

Break-even tax rate
The tax rate at which a party to a prospective transaction is indifferent between entering into and not entering into the transaction.

Cash flow after interest and taxes
Net income plus depreciation.

Corporate tax view
The argument that double (corporate and individual) taxation of equity returns makes debt a cheaper financing method.

Corporate taxable equivalent
Rate of return required on a par bond to produce the same after-tax yield to maturity that the premium or discount bond quoted would.

Regressive tax
A tax that tends to take a larger percentage of the incomes of lower income citizens than it takes from the incomes of higher income citizens. Examples: a poll tax, a flat percentage tax on only the first so many dollars of income (like the social security / national insurance contribution) or a sales tax on consumption items of common necessity (like groceries).

Progressive tax
A tax that tends to take a smaller percentage of the incomes of lower income citizens compared to the percentage it takes of the incomes of wealthier citizens. Example: an income tax with steeper rates for those in higher income brackets, or a special sales tax levied only on expensive "luxuries" like Philippe Patek watches or Mercedes-Benz sport cars.

Surtax
An additional tax levied as a percentage of an income tax amount. Both individuals and corporations pay surtaxes in addition to their base amount of federal tax.