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tax:-exernpt adj. 1. By law not subject to taxation <a tax-exempt charity>. 2. Bearing interest that is free from income tax <tax-exempt municipal bonds>. Also termed tax-free.

taxable 1. Subject to taxation <interest earned on a checking account is taxable income>. 2. (Of legal costs or fees) assessable <expert-witness fees are not taxable court costs>.

taxable cost See COST (3).

taxable cost A litigation-related expense that the prevailing party is entitled to as part of the court's award.

taxable distribution A generation-skipping transfer from a trust to the beneficiary (i.e., the skip person) that is neither a direct skip nor a taxable termination. See GENERATION-SKIPPING TRANSFER; generation-skipping tramfer tax under TAX; generation-skipping trust under TRUST; SKIP PERSON.

taxable estate See ESTATE (3).

taxable estate A decedent's gross estate reduced by allowable deductions (such as administration costs and ESOP deductions). IRC (26 USCA) § 2051. The taxable estate is the amount that is subject to the federal unified transfer tax at death. 4. A tract of land, esp. one affected by an easement. Theold definitions of this word [estate] generally confine it to lands or realty. Thus, according to lord Coke. state or estate signifieth such inheritance, freehold. term for years, &c., as any man hath in lands or tenements.' Co. Utt. 345a. So Cowell defines it to be 'that title or interest which a man hath in lands or tenements; and the same definition is given in the Termes de la Ley. And this limited sense of the word has been relied on, in argument, in some cases. But. according to the settled modern doctrine, the term estate is of much more extensive import and application, being indeed genus generalissimum. and clearly compre· hending things personal as well as real; person as well as real estate." 1 Alexander M. Burrill, A Law Dictionary and Glossary 561 (2d ed. 1867).

taxable gift See GIFT.

taxable gift A gift that, after adjusting for the annual exclusion and applicable deductions, is subject to the federal unified transfer tax. IRC (26 USCA) § 2503.

taxable income Gross income minus all allowable deductions and exemptions. Taxable income is multiplied by the applicable tax rate to compute one's tax liability.

taxable income See INCOME.

taxable termination A taxable event that occurs when (1) an interest in a generation-skipping trust property terminates (as on the death of a skip persons parent who possessed the interest), (2) no interest in the trust is held by a nonskip person, and (3) a distribution may be made to a skip person. Before the creation of taxable terminations in 1976, a taxpayer could create a trust that paid income to a child for life, then to that childs child for lite, and so on without incurring an estate or gift tax liability at the death of each generations beneficiary. See GENERATION-SKIPPING TRANSFER; generation-skipping transfer tax under TAX; generation-skipping trust under TRUST; SKIP PERSON.

taxable year See tax year under YEAR.

tax-anticipation bill A short-term obligation issued by the U.S. Treasury to meet the cash-flow needs of the government. Corporations can tender these bills at par value to make quarterly tax payments. Abbr. TAB.

tax-anticipation note See NOTE (1).

tax-anticipation warrant See WARRANT (2).

tax-apportionment clause A testamentary provision directing how inheritance and estate taxes should be paid.

taxation 1. The imposition or assessment of a tax; the means by which the state obtains the revenue required for its activities.

taxation of costs The process of fixing the amount of litigation-related expenses that a prevailing party is entitled to be awarded. - Sometimes shortened to taxation.

tax-benefit doctrine See TAX-BENEFIT RULE.

tax-benefit rule The principle that if a taxpayer recovers a loss or expense that was deducted in a previous year, the recovery must be included in the current years gross income to the extent that it was previously deducted. Also termed tax-benefit doctrine.

tax-deferred adj. Not taxable until a future date or event <a tax-deferred retirement plan>.

tax-deferred account An interest-bearing account whose earnings are not taxable as income to the account holder before the earnings are withdrawn.Tax-deferred accounts include most types of IRAs, variable annuities, 401(k) plans, cash-value life insurance, and most other types of tax-deferred savings instruments.

tax-deferred account See ACCOUNT.

tax-deferred annuity See 403(b) plan under EMPLOYEE BENEFIT PLAN.

tax-deferred annuity See 403(b) plan under EMPLOYEE BENEFIT PLAN.

tax-deficiency notice See NLNETY-DAY LETTER.

tax-exempt bond See BOND (3).

tax-exempt bond A bond that pays tax-free interest.

tax-free adj. See TAX-EXEMPT.

tax-free exchange See TAX-FREE EXCHANGE.

tax-free exchange A transfer of property for which the tax law specifically defers (or possibly exempts) income-tax consequences. For example, a transfer of property to a controlled corporation under IRC (26 USCA) § 351(a) and a like-kind exchange under IRC (26 USCA) § 1031(a). Also termed 1031 exchange. Cf. 1031 EXCHANGE.

tax-identification number A nine-digit tracking number assigned by the Internal Revenue Service to the tax accounts of businesses and also to entities or individuals who are required to file business tax returns. - Abbr. TIN. Often shortened to tax i.d. Also termed employer-identification number (EIN);federal-employer-identification number (FEIN).

tax-increment financing A technique used by a municipality to finance commercial developments usu. involving issuing bonds to finance land acquisition and other up-front costs, and then using the additional property taxes generated from the new development to service the debt. Abbr. TIF.

taxing district See DISTRICT.

taxing district A district constituting the whole state, a county, a city, or other smaller unit throughout which a particular tax or assessment is ratably apportioned and levied on the district's inhabitants.

taxing power The power granted to a governmental body to levy a tax; esp., the congressional power to levy and collect taxes as a means of effectuating Congress s delegated powers. U.S. Const. art. I, § 8, d. 1. See SIXTEENTH AMENDMENT.

taxing power See POWER (3).

tax-loss carryback See CARRYBACK.

tax-loss carryforward See CARRYOVER.

tax-loss carryover See CARRYOVER.

tax-option corporation See S corporation under CORPORATION.

tax-option corporation See S corporation.

taxpayer One who pays or is subject to a tax. Cf. TAX PROTESTER.

taxpayers bill of rights Federal legislation granting taxpayers specific rights when dealing with the Internal Revenue Service, such as the right to have representation and the right to receive written notice of a levy 30 days before enforcement.

taxpayers lists Written exhibits required of taxpayers in some taxing districts, listing all property owned by them and subject to taxation, used as a basis for assessment and valuation. Cf. ROLL (2).

taxpayer-standing doctrine Constitutional law. The principle that a taxpayer has no standing to sue the government for allegedly misspending the publics tax money unless the taxpayer can demonstrate a personal stake and show some direct injury.

tax-preference items Certain items that, even though lawfully deducted in arriving at taxable income for regular tax purposes, must be considered in calculating a taxpayers alternative minimum tax. See alternative minimum tax under TAX.

tax-protest scheme A plan designed to avoid or express dissatisfaction with tax laws, usu. by unlawful means. The most common schemes involve illegally evading or reducing tax liabilities, or interfering with the administration of the tax laws.

tax-rate schedule A schedule used to determine the tax on a given level of taxable income and based on a taxpayers status (for example, married filing a joint income-tax return). Also termed tax table.

tax-return privilege See PRIVILEGE (3).

tax-return privilege A privilege to refuse to divulge the contents of a tax return or certain related documents. The privilege is founded on the public policy of encouraging honest tax returns. 4. Civil law. A creditor s right, arising from the nature of the debt, to priority over the debtor s other creditors. 5. Parliamentary law. The status of a motion as outranking other business because of its relationship to the meeting s or a member s rights. - Also termed parliamentary privilege. See question of privilege under QUESTION (3).

tax-sheltered annuity See 403(b) plan under EMPLOYEE BENEFIT PLAN.

tax-sheltered annuity See 403(b) plan under EMPLOYEE BENEFIT PLAN.

tax-straddle rule A rule preventing undue deferral of tax on income or conversion of ordinary income or short-term capital gain into long-term capital gain by disallowing the premature deduction of a loss on sale or disposition of one leg of a straddle position while retaining the other, offsetting leg or position. For example, in a straddle position a promise to sell may be offset by a promise to buy, such as in a futures contract. This practice has been greatly restricted by the requirement that gains and losses on commodities transactions must be reported based on their value at year end. IRC (26 USCA) § 165(c)(2). See STRADDLE.

TBC abbr. Trial before the court. See bench trial under TRIAL.

T-bill abbr. TREASURY BILL.

T-bond abbr. TREASURY BOND.

TDA abbr. UNITED STATES TRADE AND DEVELOPMENT AGENCY.

teach 1. (Of a patent specification) to instruct (a person of ordinary skill in the art how to make and use an invention). 2. (Of a priorart reference) to anticipate (the invention being examined) by discussing, describing, or analyzing the inventions essential elements or technology. In this sense, prior art that discourages an inventor from pursuing an invention "teaches away from" that invention. A teaching raises a statutory bar to an inventions patentability.

teamwork Work done by a team; esp., work by a team of animals as a substantial part of ones business, such as farming, express carrying, freight hauling, or transporting material. In some jurisdictions, animals (such as horses) that work in teams are exempt from execution on a civil judgment.

tear-me-open license See shrink-wrap license under LICENSE.

TEAS abbr. TRADEMARK ELECTRONIC APPLICATION SYSTEM.

TEC abbr. Tariff exterior commun. See common external tarijfunder TARIFF (2).

TECA (tee-ka). abbr. TEMPORARY EMERGENCY COURT OF APPEALS.

technical adjustment A brief change in the general upward or downward trend of stock-market prices, such as a short rally during a bear market.

Technical Advice Memorandum A publication issued by the national office of the IRS, usu. at a taxpayers request, to explain some complex or novel tax-law issue. - Abbr. TAM.

technical conversion See CONVERSION (2).

technical conversion The taking of another's personal property by one who acts in good faith and mistakenly believes that he or she is lawfully entitled to the property. Also termed innocent conversion; negligent conversion.

technical error See harmless error under ERROR (2).

technical error See harmless error. 3. An appeal <a proceeding in error>.

technical estoppel 1. An estoppel arising from a matter of record or from a deed made by the party who is claimed to be estopped. Estoppels by deed or by record are called "technical" because the rules of estoppel apply with certainty in appropriate cases. 2. COLLATERAL ESTOPPEL. See estoppel by deed.

technical estoppel See ESTOPPEL.

technical mark See technical trademark under TRADEMARK.

technical mortgage See MORTGAGE.

technical trademark See TRADEMARK.

technical trust See passive trust under TRUST.

Technology Administration A unit in the U.S. Department of Commerce responsible for working with industry on ways to use technology to stimulate economic growth. The agency also carries out technology programs and disseminates information about technology. It has three offices: the Office of Technology Policy (OTP), the National Institute of Standards and Technology (NIST), and the National Technical Information Service (NTIS). It was established in 1988. 15 USCA § 3704.

technology transfer 1. The sale or licenSing of intellectual property. 2. The field involving the sale and licensing ofintellectual property. Many major universities have an office of technology transfer to control the universitys intellectual property and generate income from it.

teen court A group of teenagers who (1) hear cases involving juveniles, usu. first-time offenders, who have acknowledged their guilt or responsibility, and (2) impose sanctions within a fixed range, usu. involv ing counseling, community service, or restitution. Some local jurisdictions in more than half the states have provided for this type of tribunal. The juvenile offender consents to the assessment of punishment by this jury of peers. The American Bar Association encourages the formation of these kinds of courts. Also termed youth court.

teen court See COURT.

teind (tcend). Scots law. (usu. pl.) A tithe. teind, vb. - teindable, adj.

teind court See TEIND COURT.

Teind Court A court that adjudicates questions relating to teinds, esp. increases in the stipends of parish ministers. It includes one of the judges of the Court of Session, sitting as Commissioner ofTeinds. Also termed Court of Teinds.

telccopier See FAX (2).

teleological interpretation See purposive construction under CONSTRUCTION.

telescam A fraud committed by using telemarketing to induce the victim to disclose sensitive personal information or send money to the perpetrator. Cf. BOILERROOM TRANSACTION; PHISHING.

teller 1. A bank clerk who deals directly with customers by receiving and paying out money. 2. Parliamentary law. A member of a tellers committee; esp., a vote-counter at an election. See tellers committee under COMMITTEE.

Teller in Parliament One of the members of the British House of Commons - two from government and two from the opposition appointed by the Speaker to count votes.

teller vote See lobby vote under VOTE (4).

tellers check See CHECK.

teller's check A draft drawn by a bank on another bank or payable at or through a bank.

tellers committee See COMMITTEE.

tellers committee A committee that helps the chair administer an election or other vote by handing out and picking up ballots if necessary, counting the votes or canvassing the ballots, and reporting the result to the chair for announcement. See CANVASS (2).

temerarium perjurium super assisam (tem-a-rair-ee-am par-juur-ee-am s[y]oo-par a-si-zam). [Law Latin]. Rash perjury on an assize. The phrase described a perverse verdict returned by a jury.

temere jurantes super assisam (tem-a-ree juur-an¬teez s[y]oo-par a-si-zam). [Law Latin]. Persons swearing rashly upon an assize. See TEMERARIUM PERJURIUM SUPER ASSISAM.

temere litigare (tem-a-ree lit-a-gair-ee), vb. [Latin]. To litigate rashly.

temperance 1. Habitual moderation regarding the indulgence of the natural appetites and passions; restrained or moderate indulgence (esp. of alcoholic beverages). 2. Abstinence.

temperate damages See DAMAGES.

temperate damages Rare. Reasonable damages.