Tax Terminology
Here at PSVS we are in the trenches every day helping you navigate your way through the various complexities of your accounting-related activities. It is easy to forget that not everyone knows all the accounting-specific terminology we use daily.
We have created this fairly comprehensive glossary to supplement your knowledge and understanding and hopefully answer some of your questions.
Of course, if you have any questions send us an email or give us a call: (650) 578-1200.
Hobby
An activity that is carried on for personal pleasure or recreation and is not entered into with the intention of making a profit.
Holding Period
The length of time investment property has been held. The time between the date of purchase (or acquisition) and the date of sale (or disposition). The holding period for stocks and securities begins the day after the trade date and ends the day of sale.
Home Mortgage Interest
Any interest an individual pays on a loan secured by their home (either their main home or a second home). The loan may be a mortgage to buy their home, a second mortgage, a line of credit, or a home equity loan.
Household Services
Ordinary and usual services done in and around the taxpayer's home that are necessary to run their home, including the services of a housekeeper, maid, or cook, but not including the services of a chauffeur, bartender, or gardener.
