Tax break that is allowed by the government and used to reduce taxable income. Items such as mortgage interest, loan points that are paid and property taxes.
Tax deed
The type of instrument given to a grantee by a government that had claimed the property for unpaid taxes.
Tax district
Region or locality that assessed real estate taxes on the properties located within its borders. Frequently, the local county or city is the property taxing jurisdiction that is empowered, by law, to assess taxes on real estate.
Tax equity and fiscal responsibility act of 1982 (tefra)
Federal tax legislation notably establishing 19% withholding on interest and dividends.
Tax evasion
Failure to pay taxes legally due the government, often by failure to report some income received or claiming false deductions.
Tax exempt
Tax-free status given to certain nonprofit organizations and governmental entities.
Tax exempt bond
Bond whose interest is free of federal, state or local tax in the state of the issuer and is typically a municipal bond of a state or county agency.
Tax exempt property
Real estate that is not subject , in whole or part, to ad valorem property taxes. Churches, charities and government buildings do not pay property tax because of their tax-free status.
Tax flaw
Defect in the tax law that either may provide a loophole to minimize the tax payment or result in higher taxes than there should be.
Tax foreclosure
Property taken over by the government because the owner has failed to pay taxes on it. The property may revert back to the owner when the taxes are paid. If not, the government may sell the property to collect the amount due.
