Industry Related Definitions
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O
Open Year
A taxable
year for which the statute of limitations has not yet expired.
Operator
One who
holds the working or operating rights in a gas or oil activity and is
obligated for the costs of development and production.
Option
An
agreement to buy or sell property on or before a specified date at an
established price. The sale or exchange of an option to buy or sell
property results in capital gain or loss if the property is a capital
asset.
Ordinary
Common and
accepted in the general industry or type of activity in which the
taxpayer is engaged. It is one of the tests for the deductibility of
expenses incurred or paid in connection with a trade or business; for
the production of income; for the management, conservation, or
maintenance of property held for the production of income; or in
connection with the determination, collection, or refund of any tax.
Ordinary Income or Loss
Income or
loss that is fully includable in (or deductible from) gross income and
that does not have the characteristics of capital gain or loss.
Owner-Employee
A sole
proprietor (self-employed individual).
Owner's
equity
The
difference between the total assets and total liabilities of a
business.
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