Match each term with the correct statement below.

Question

A. Based on the value of the property being taxed
B. Subtractions from gross income specifically allowed by the tax law
C. Based on a quantity of a product sold
D. Increases in a taxpayer’s wealth and recoveries of a taxpayer’s capital investment that Congress has decided should not be subject to income tax
E. Current period expenditure incurred in order to earn income
F. The excess of the selling price of an asset over its tax basis
G. The excess of an asset’s tax basis over its selling price
H. The common and recurring type of income earned by taxpayers for a year
I. The payment of tax throughout the year close to the time income is earned as is reasonable.
J. Any type of property that is not real property
K. Land and any structures permanently attached to it
L. A taxpayer is responsible for determining his or her tax liability and paying the tax due timely.
M. Used by persons who do not itemize deductions on their return
N. The period of time during which a taxpayer and/or the IRS can correct the taxpayer’s taxable income
O. The value or amount that is subject to taxation
P. Direct reduction in the income tax liability often created by Congress to further a public purpose

Answer 1

A. Ad valorem tax
B. Deduction
C. Excise tax
D. Exclusion
E. Expense
F. Gain
G. Loss
H. Ordinary income
I. Pay-as-you-go concept
J. Personal property
K. Real property
L. Self-assessment
M. Standard deduction
N. Statute of limitations
O. Tax base
P. Tax credit