Industry Related Definitions
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F
Fair Market Value (FMV)
The amount
at which property would change hands between a willing buyer and a
willing seller, neither being under compulsion to buy or sell and both
having reasonable knowledge of the relevant facts.
Fair Rental Value
The amount
the owner of property could reasonably expect to receive from a
stranger for the same type of lodging; generally, the amount at which
a home with its furnishings could be rented to a similar size family
in a similar location.
Federal Income Tax Withheld
The amount
withheld from an employee's wages and submitted by the employer to the
IRS as an advance payment of the employee's federal income tax.
Fiduciary
One who
acts for an estate or trust to manage the property of the estate or
trust.
Finance Charges
Amounts
paid for the privilege of making purchases on a deferred-payment
basis.
First In, First Out (FIFO)
An
accounting method for determining the cost of inventories. Under this
method, the first items purchased are treated as being the first items
sold. Ending inventory is valued using the cost of later purchases, or
the lower of cost or market.
Fiscal
period
The
period of time over which earnings are measured.
Fiscal Year
An
accounting year ending on the last day of any month except December.
Foreign Corporation
A
corporation not organized under the laws of one of the states or
territories of the United States.
Foreign Tax Credit or Deduction
A credit
or deduction available to a U. S. citizen or resident alien, and in
limited circumstances to a U. S. nonresident alien, who incurs or pays
income taxes to a country other than the United States.
Foster Child
For tax
purposes, a child other than a natural or adopted child, who lived
with the taxpayer for the entire year and whom the taxpayer cared for
as his own child. The term foster child does not include a child
placed with the taxpayer by a child-placing agency that makes payments
to the taxpayer as a foster parent.
Fringe Benefits
Compensation
or other benefits received by an employee that are not in the form of
cash. Some fringe benefits (for example, accident and health plans,
and group-term life insurance) may be excluded from the employee's
gross income and, therefore, are not subject to federal income tax.
Full-Time Student
An
individual who is enrolled in a school for the number of hours or
courses considered by the school to be full-time. School includes
elementary and secondary schools, post-secondary colleges, on-the-farm
training courses, and technical and trade schools. It does not include
on-the-job training, correspondence schools, or night school. However,
a student will not be disqualified by night classes that are part of a
full-time course of study.
Fully Taxable Pensions
Pensions
for which taxpayers contributed none of the cost or have recovered
their cost in previous years.
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