Income baskets

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Income baskets

Category to which certain income is allocated. Losses in one basket may not be used to offset gains in another basket. Specified in U.S. tax code.

Income Baskets

Several categories of income used for tax purposes. Unless the U.S. Tax Code states otherwise, a loss in one income basket can be used to offset a profit in another income basket. Thus, one only owes taxes on the net income after all, relevant baskets have been offset.
References in periodicals archive ?
Royalties usually are subject to low tax rates and generally are included in the passive income basket.
The latter allocates $30 of the dividend (75% x $40) to its residual basket and $10 to its passive income basket.
As expected, the majority of foreign-source taxable income was reported in the general limitation income basket (71.
Each separate income basket includes the foreign income taxes related to the income in that basket.
S taxpayer to such income): such high-taxed income is excluded from the passive income basket and included in the general limitation basket.
904 that determine whether passive income is "highly taxed" for purposes of assigning an item of income and its related FTCs to the passive or general limitation income basket.
The financial services income basket was responsible for the second-largest share of these amounts, with 18.
In the international area, one provision reduces the number of income baskets for foreign tax credits from nine to two--one passive income basket and one general one.
The legislation also consolidates the foreign tax credit baskets to two; a passive basket and a general income basket (effective in 2007), and provides for elective worldwide interest expense apportionment (effective in 2009).
the income basket nave enE[degrees] raw materials are transported via redler conveyors to adjacent storage silos.
The foreign tax credit limitation is applied separately to income in the passive income basket and to the general income basket; credits for foreign tax in one basket cannot be used to offset U.
The new law also reduces the old law's nine foreign tax credit limitation baskets to only a general category income basket and a passive category income basket, generally effective for tax years beginning after 2006, subject to a transition rule for tax years beginning after 2004.