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Simple English definitions for legal terms

tax-benefit rule

Read a random definition: acceptance of service

A quick definition of tax-benefit rule:

The tax-benefit rule is a principle that says if you got money back for something you lost or spent in a previous year, you have to include that money in your income for the current year. This is because you already got a tax deduction for that loss or expense in the previous year, so you can't get a tax break twice for the same thing. It's like if you borrowed a toy from a friend and then gave it back, you can't keep it and borrow it again. The tax-benefit rule is also called the tax-benefit doctrine.

A more thorough explanation:

Tax-Benefit Rule

The tax-benefit rule is a principle that states if a taxpayer recovers a loss or expense that was deducted in a previous year, the recovery must be included in the current year's gross income to the extent that it was previously deducted. This is also known as the tax-benefit doctrine.

Let's say you own a rental property and in 2019, you had to pay $5,000 for repairs. You deducted this expense on your 2019 tax return. In 2020, you received an insurance reimbursement of $3,000 for the same repairs. According to the tax-benefit rule, you must include the $3,000 reimbursement as income on your 2020 tax return because you previously deducted the $5,000 expense in 2019.

Another example is if you claimed a deduction for a charitable donation in a previous year and then received a refund for that donation in the current year, you would need to include the refund as income on your current year's tax return.

The tax-benefit rule ensures that taxpayers do not receive a double tax benefit for the same expense or loss. If a taxpayer deducts an expense or loss in one year and then recovers that expense or loss in a subsequent year, the recovery must be included in the taxpayer's income to prevent them from receiving a tax benefit twice. The examples illustrate how the tax-benefit rule works in practice and how it affects a taxpayer's income in the year of recovery.

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13:51
I do think people might be using the term unicorn PI too liberally
13:51
Used to mean career outcomes that were pretty much only possible out of HYS and maybe NYU
Some consider Unicorn PI to include things like Asst US Attorney. In that case, you can achieve that by going anywhere that will allow you sit for the bar so long as your grades are strong and your internships and/or clerkships align.
16:34
Chowie go to Berk cause that's probably where I end up
16:34
But in all seriousness I would take Miami. If you're 100% committed to PI I don't think the .1% outcome that may be possible from Berk is worth taking on insane debt
has anyone heard back on a saturday or sunday?
and do we think any school would send out decisions on monday (since its presidents day)
techsplitter
19:01
no
20:10
take full ride 100%
20:11
@ChowieBean: ^
20:47
@LeanDeadCloud: HR works m-thu 10-2
J-Reuben-Clark-Law
11:50
Good for UT Austin people: https://www.youtube.com/watch?v=MWTt77PPg4Q
J-Reuben-Clark-Law
17:18
"The man of talent is like a marksman who hits a mark others cannot hit; the man of genius is like a marksman who hits a mark they cannot even see to."
omelette
8:21
today's gonna be quiet asf just like this past weekend
omelette
8:25
some schools are open today tho apparently like columbia so some decisions might be imminent
UGA🫵🏻
Just got my acceptance to NCCU last week + I did my interview with Elon (not too exciting they give every applicant one).
Also received rejections from UNebraska and Wake
omelette
10:04
congrats on NCCU!
BatmanBeyond
11:51
I got waitlisted at an in-state school above both medians. The whole idea was that it's a cheaper, accessible option than my sole A. This cycle is brutal.
BatmanBeyond
11:52
Not even motivated to write a LOCI, but even if I get in, should I expect no scholarships?
omelette
11:52
you can still get schollies off the waitlist but maybe not a full ride yk
BluePacedCephalopod
11:56
sounds like yield protection
BluePacedCephalopod
11:56
fwiw i got put on then taken off my safety's WL in about a month and then got a 75% scholly
BatmanBeyond
12:18
@BluePacedCephalopod: did you write a LOCI?
BluePacedCephalopod
12:18
no they reached out for an interview
12:28
has UVA done any admit in the past few days?
omelette
13:18
yes 2/13 and 2/14, they wouldnt release on a weekend
thecableguy7
15:06
UT Austin today?
J-Reuben-Clark-Law
15:16
More like UTI Austin am I right ladies.
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