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Income Baskets
(redirected from Income Basket)

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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.


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The financial services income basket was responsible for the second-largest share of these amounts, with 18.
The pre-existing nine baskets largely involved a single active income basket and a series of passive or specialized baskets that were designed to present companies from using easily manipulated investments to reduce tax liability.
Beginning in 2007, the number of foreign-source income baskets is reduced from nine to two: passive and general limitation.
 
 
 
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