Realization (tax)
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Realization (tax)
Realization, for Income tax in the United States, U.S. Federal income tax purposes, is a requirement in determining what must be included as income subject to taxation. It should not be confused with the separate concept of Recognition (tax). Income Realization is a trigger for calculating income taxation. It is one of the three principles for defining income under the seminal case in this area of tax law, ''Commissioner v. Glenshaw Glass Co.'' In that case, the Supreme Court interpreted a statute under the tax code and determined that income generally means "undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion." It is also discussed in ''Helvering v. Bruun,'' in which the court explained that "the realization of gain need not be in cash derived from the sale of an asset. Gain may occur as a result of exchange of property, payment of the taxpayer's indebtedness, relief from a liability, or other profit realized from the completion of ...
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Income Tax In The United States
Income taxes in the United States are imposed by the federal government A federation (also known as a federal state) is a political entity A polity is an identifiable political entity—any group of people who have a collective identity, who are organized by some form of Institutionalisation, institutionalized ..., and most states State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, Un .... The income tax An income tax is a tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interrelate ...es are determined by applying a tax rate, which may increase as income increases, to taxable income Taxable income refers to the ...
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