United capital self liquidating loan

Basically, a borrower takes out a loan that is used to finance business activities that generate revenue.

Then the borrower takes the revenue generated from those business activities and uses it to repay the money that was borrowed to finance the activities.

ACCOUNTING PERIOD -- A period of time used by taxpayer for the determination of tax liability ACCOUNTS PAYABLE -- A list of the debts currently owed by a person or business, mainly for the purchase of services, inventory, and supplies ACCOUNTS RECEIVABLE -- A list of the money owed on current account to a creditor, which is kept in the normal course of the creditor's business and represents unsettled claims and transactions ACCOUNTING RECORDS -- All documents and books used in the preparation of the tax return and all financial statements, including general ledger, subsidiary ledgers, sales slips, and invoices.

ACCRUAL BASIS (ACCRUAL METHOD) -- An accounting method whereby income and expense items are included in taxable income or expense as they are earned or incurred, rather than when they are received or paid AD VALOREM TAX -- A tax on goods or property expressed as a percentage of the sales price or assessed value ADMINISTRATIVE COMPANY -- See: Service company ADMINISTRATIVE EXPENSES -- Expenses that are not as easily associated with a specific function as are the direct costs of manufacturing and selling.

The repayment schedule and maturity of a self-liquidating loan are designed to coincide with the timing of the assets' income generation.

For example, they do not make sense for fixed assets, such as real estate, or depreciable assets, such as machinery.A business might use a self-liquidating loan to purchase extra inventory in anticipation of the holiday shopping season.The revenue generated from selling that inventory would be used to repay the loan.They are not considered to necessarily reflect official position of the OECD in interpreting international tax terms, for example, in the tax treaty context.A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W--Z -A- ABATEMENT -- A reduction in the assessment of tax, penalty or interest when it is determined the assessment is incorrect ABUSE OF LAW -- The doctrine which allows the tax authorities to disregard a civil law form used by the taxpayer which has no commercial basis ACCELERATED DEPRECIATION -- Method of depreciation under which taxpayers may allocate larger depreciation deductions to the first year or first few years of useful business assets, such as plant and machinery ACCOUNTING BASIS -- Method of calculating amounts subject to income tax and VAT.If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

258

Leave a Reply