Taxable event

Taxable event

An event or transaction that has a tax consequence, such as the sale of stock holding that is subject to capital gains taxes.

Taxable Event

A transaction or other action that results in one receiving income that may be taxed. Common taxable events are the reception of a paycheck or the sale of stock for a profit. Often, investors wait to sell securities until a certain time (such as a new calendar year) in order to minimize the taxable events that occur in a given period of time.
References in periodicals archive ?
While the rights to the eventual income are earned through the performance of services over a period of time, the taxable event (exercise in the case of options, vesting in the case of restricted stock) occurs after some or all of those services have been performed.
Shares earned related to these PRSU awards became fully vested on February 14, 2013 and resulted in a taxable event to the individual.
However, selling an investment to buy another could cause a taxable event.
Tax-free: Charges for LTCI against annuity or life insurance account values are not considered a taxable event, and benefits are paid out tax-free.
That meant it was our determination that this was a taxable event.
The factors outlined in Estate of Mueller (101 TC 551) require: (1) that the otherwise time-barred overpayment is sought as an offset; (2) the overpayment arises out of the same transaction, item or taxable event as the overpayment before the court; (3) the transaction, item or taxable event has been inconsistently subjected to two taxes; and (4) if the transaction, item or taxable event involves two or more taxpayers, there is sufficient identity of interest between the taxpayers subject to the two taxes that the taxpayers should be treated as one.
Because the trust is treated as a grantor trust, the sale is not a taxable event.
There are arguments that the conversion of separate property into community property may constitute a taxable event under the gift tax laws, while others believe there can be no gift taxes assessed because the change in ownership was caused by operation of law, not as a result of gifting.
Trani said switching from splitdollar to group UL/VUL is not a taxable event for a company.
In a similar vein, EU accession may present opportunities for greater efficiency in corporate reorganizations, in light of the EU Mergers Directive that requires that cross border mergers not be a taxable event for corporate tax purposes and must preserve carry forward of losses, provisions and reserves.
ASAE argued that the IRS should not treat the provision of an Internet link from an exempt organization to a corporate sponsor's Web site as a taxable event.
The final legislation does contain provisions to ensure that the transfer of assets at death will not cause a taxable event in most cases.