Short Tax Year

Filed Under » ,
Dictionary Says

Definition of 'Short Tax Year'

A tax year, whether fiscal or calendar, that is less than one year in length. Short tax years occur either when a business is started or the method of accounting is changed. Short tax years occur only for businesses, never for individual taxpayers, because individuals must file on a calendar-year basis and do not have the option of choosing a fiscal year.

Investopedia Says

Investopedia explains 'Short Tax Year'

If a business begins in the middle of May, and the business owner wishes to file on a calendar-year basis, the business will have a short tax year, with income and expenses for only 8.5 months reported on the 1040. A similar situation would occur if the business owner wished to use a fiscal year that began in a different month than that in which the business was established.

A short tax year can also occur when a business desires to change its taxable year. For example, a business that reports income from June to June every year decides to change its fiscal year to begin in October. Therefore, a short tax year from June to October must be reported.
Search results for

'Short Tax Year'

  • 7 Year-End Tax Planning Strategies

    http://www.investopedia.com/articles/tax/09/offset-capital-gains.asp
    ... check the fund company's estimates of dividends, short-term gains ... gains before you
    buy them at year-end in ... due to the Jobs and Growth Tax Relief Reconciliation ...

  • 10 Money-Saving Year-End Tax Tips

    http://www.investopedia.com/articles/pf/06/YearEndTax.asp
    ... during the year is usually counted for that year. ... pay off that balance within a short
    period, preferably ... Effective for tax years beginning after August 17, 2006 ...

  • Taxation Rules For Bond Investors

    http://www.investopedia.com/articles/tax/08/bond-tax.asp
    ... must report a prorated portion of interest each year as income ... will be taxable at
    ordinary long- or short-term capital ... bonds as a result of their tax-free status ...

  • Selling Losing Securities For A Tax Advantage

    http://www.investopedia.com/articles/04/122704.asp
    ... For tax-reporting purposes, the short-term gains and losses (those made in one year
    or less) are first netted against each other for the tax year; then long ...

  • 3 Common Tax Questions Answered

    http://www.investopedia.com/articles/05/taxFAQs.asp
    ... You were a US citizen for the entire year. Your previous tax years spanned
    12 months - as opposed to a short year (less than 12 months). ...

  • Capital Gains Tax 101

    http://www.investopedia.com/articles/00/102300.asp
    ... But had you held the stock for less than one year (made a short-term capital gain),
    your profit would have been taxed at your ordinary income tax rate which ...

  • How do I avoid paying excess taxes on securities I have sold?

    http://www.investopedia.com/ask/answers/07/taxtipsecurities.asp
    ... long-term capital gain exceeds your net short-term capital loss, are generally lower
    than the tax rates that ... If you sold securities during the year, check to ...

  • Weighing The Tax Benefits Of Municipal Securities

    http://www.investopedia.com/articles/04/072804.asp
    ... Short-term municipal securities can be a very attractive addition to a well-diversified ...
    Avoiding A Big Tax Bill On Real Estate Gains. ... 1 Year CD, 0.70%, 0.75%. ...

  • Using Tax Lots: A Way To Minimize Taxes

    http://www.investopedia.com/articles/05/taxlots.asp
    ... the ordinary and qualified dividends for you for tax purposes. ... you purchased as you
    must report your short-term and long-term gains for the year, which is ...

  • Tax Tips For The Individual Investor

    http://www.investopedia.com/articles/01/112801.asp
    ... strong price appreciation, without regard to the higher tax rate applied to
    short-term capital gains. Match Your Profits and Losses in the Same Year In many ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links