An imputed income is a value that is part of a person's income, although he or she doesn't receive it in cash form. Common types...
What is imputed income in insurance? In insurance, imputed income typically refers to the taxable value of benefits like group-term life insurance or health insurance for non-dependents. When coverage exceeds specific limits, the excess amount is added to taxable income. This helps you account for...
their holders may be liable for local, state, and federal taxes on the amount of theirimputedinterest. This phantom income can be offset by purchasing tax-free zero-coupon bonds, tax
Under the cash method, tax is only applied when the bonds are redeemed. Therefore, a taxpayer that holds a bond for seven years before selling it will only be taxed at the time the bond is sold. Using the accrual method, on the other hand, taxes on the imputed interest earned are appl...
Taxing agencies know when corporations issue franked investment income to avoid double taxation. This is done with the help of imputed tax orfranking credits. These are tax credits paid by the dividend-paying corporations. Once this credit is applied, the entity that receives the dividend can then...
Even though the bondholder does not receive interest income, they are still required to report the imputed interest on the bond to the IRS. Bond Basics To help explain one, let's first describe a bond. A bond is adebt instrumenttraditionally comprised of two parts, the face value (principal...
Smokers realize savings due to lower prices, but no income is to be imputed in the national accounts as a result of a transaction of that kind. However, where macroeconomic effects of a potential increase in taxation of tobacco product are in question, it should account not only for tax ...