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Simple English definitions for legal terms

cash-expenditure method

Read a random definition: United States Code Annotated

A quick definition of cash-expenditure method:

The cash-expenditure method is a way the government checks if people are reporting all their income for taxes. They look at how much money someone spent on things during a certain time and compare it to how much money they said they made during that time. If the spending is more than the reported income, the government will say that the extra money is taxable income.

A more thorough explanation:

The cash-expenditure method is a technique used by the Internal Revenue Service (IRS) to determine a taxpayer's unreported income. This is done by comparing the amount of money spent on goods and services during a specific period with the income reported for that same period. If the amount spent exceeds the reported income, the difference is considered taxable income.

Let's say that John is a freelance graphic designer who reported an income of $50,000 for the year. However, the IRS notices that John spent $70,000 on various expenses during the same year. Using the cash-expenditure method, the IRS can assume that John's unreported income is $20,000 ($70,000 - $50,000), which would be subject to taxation.

Another example could be a small business owner who reports an income of $100,000 for the year but spends $120,000 on business expenses. In this case, the IRS could use the cash-expenditure method to assume that the business owner's unreported income is $20,000 ($120,000 - $100,000).

These examples illustrate how the cash-expenditure method is used to identify unreported income by comparing reported income with the amount of money spent on expenses. It is important for taxpayers to keep accurate records of their expenses to avoid any discrepancies with the IRS.

cash-equivalent doctrine | cash flow

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eggan
16:14
ok but like.... how many people are doing that. you dont actually know do you
eggan
16:14
if you had a source that would be different
TONS lmfao especially asians who, like that columbia hoe, need them to "slow down"
AngryMiniCar
16:15
Not my entire race lmao
DarioDarko
16:15
Okay so this is a racist thing
eggan
16:15
ok lol ok im done engaging. anyway. hows everyones date
GO look at biglaw lawyers complaing about the crops since 2022 when the 2019 lsat changes started to impact things, they notice they need 16 hours to do what a 2008 grad did in 8
eggan
16:15
day*
AngryMiniCar
16:16
good until I got a -16 on RC cause I can't read. Lowkey paradoxical because LRs I get -1/-3
AngryMiniCar
16:16
Hbu lol
Usually -0 LG -0 LR -2 Rc
AngryMiniCar
16:16
Gimme some of that
eggan
16:16
ooo i have advice from a 169 scorer. basically with RC the main things you need to do to prepare are to pretend what youre reading is the most interesting thing ever, and prepare by reading more fiction (for adults)
eggan
16:17
novels like metamorphosis, brave new world, no longer human, crime & punishment, those kinds of novels for adults with complex language structure will be helpful (im just listing books i like but you can read anything)
Read moby dick
NosyBeagle
16:18
@AngryMiniCar: ill trade u for your lr score lol
NosyBeagle
16:18
@windyMagician: sounds good. I will start doing this
AngryMiniCar
16:18
Naww I worked my asssss off for that LR result
NosyBeagle
16:18
lmaooo
eggan
16:19
you atted windy lol you probably meant to at me but thats ok
Also also, at the same time, the biglaw lawyers increasingly are going "fuck these t30 hires are really good (the non accommodated 160s who would be t14 people in 2008 over these accommodated 170s in the t14 lmfao)" lolololol Also for RC just the more you do the better you are.
AngryMiniCar
16:20
@eggan: thanks! I'll do that.
16:20
Sometimes my mind just goes blank when staring at an RC passage
16:21
what helped me most for RC was that the right answer will always be in the passage, even if its only implied
16:21
so you just have to justify your answer choice with specific line support
NosyBeagle
16:21
maybe i forgot who i was talking to. you can't scroll after a bit lol
@PremiumFrequentCrane: i dont have accomodations you absolute buffoon
NosyBeagle
16:22
trying to see if i have it in me to do another lr set
NosyBeagle
16:23
the best i've done on lr has been -10. I have a long way to go
@NosyBeagle: you need to be drilling weak question types and not doing full sets if you're at -10
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