Tax Audit - A Tax Audit is a formal examination of your tax return by IRS auditors.
Tax Bracket - A Tax Bracket is a range of income which must pay a certain level of taxes. The higher your income, the higher your tax bracket, and the more tax you pay.
Tax Credit - A Tax Credit is an amount by which tax owed is reduced directly. In other words, a dollar-for-dollar amount is subtracted directly from the taxes you owe.
Tax Exemption - You may take a Tax Exemption, from your adjusted gross income for yourself, your spouse, and any dependents. The tax exemption basically excludes money from taxation.
Tax Lien - A Tax Lien is a lien that is attached to property if the owner does not pay his or her real estate taxes or federal income taxes. If overdue property taxes are not paid, the owner's property might be sold at auction for the amount owed in back taxes.
Tax Shelter - A Tax Shelter is an investment entered into for the primary purpose of lowering your tax burden.
Taxable Income - Taxable Income is your gross earnings minus deductions and exclusions.
Tenancy by the Entirety - Tenancy by the Entirety is a type of ownership whereby both the husband and wife each own the complete property. Each spouse has an ownership interest in the property as their marital residence and, as a result, creditors of one spouse cannot force the sale of the home to pay back his or her debts without the other spouse's consent. There are rights of survivorship whereby upon the death of one spouse, the other spouse would immediately inherit the entire property.
Tenants in Common - Tenants in Common is a type of ownership in which two or more parties have an undivided interest in the property. The owners may or may not have equal shares of ownership, and there are no rights of survivorship. However, each owner retains the right to sell his or her share in the property as he or she sees fit.
Tender Offer - A Tender Offer is made when a company wants to takeover another company. The acquiring company will offer a price per share that is typically above the market price. You will be asked to tender, or surrender, your shares for the higher price. In reality, after the tender offer is made, the market price for your stock will usually go up and match the offer (if it doesn't match the offer, there is some concern in the market that the deal may not go through).
Term (Bonds) - When discussing bonds, Term refers to the length of time during which principal and interest payments are made. Short-term bonds run up to 3 years in length. Intermediate bonds are from 3 to 10 years in length. Long-term bonds run up to 30 years in length. Generally, the bonds that pay the highest interest rate are the long-term bonds. However, you'll only earn an extra percentage point or so on your money and have to tie is up for a long period of time. Financial planners say a better bet is to purchase intermediate-term bonds, which are more flexible.
Term (Car Lease) - When discussing car leases, Term refers to how long the car lease lasts. Generally, you won't want to get a car lease for longer than 3 years. Too many things can start to go wrong with a leased car in it's 4th or 5th year, and the likelihood that you'll get some nicks and dings increases.
Title - Title refers to the ownership of a particular piece of property.
Title Company - A Title Company is the corporation or company that insures the status of title on real estate (called title insurance) at a closing, and may handle other aspects of the real estate closing.
Title Insurance - Title Insurance is insurance that protects the lender and the property owner against losses arising from undisclosed defects or problems with the title to property.
Total Return - Your Total Return includes your dividends plus the gain or loss in the price of the company's stock. If the stock rises 5 percent and your dividends are 2 percent, your total return is 7 percent.
Transaction Fees - Transaction Fees are the costs mutual funds incur when they buy and sell shares of stock on the open market.
Treasuries - Treasuries are products offered by the federal government to raise money. The three types of treasuries are Treasury Bills (also known as a T-Bills), Treasury notes, and Treasury bonds. Uncle Sam uses the money raised from the sale of these three products to pay for social and spending programs. Collectively, this debt is our national debt. It is considered fail-proof, since it is backed by the U.S. Government.
Treasury Bills (T-Bills) - Treasury Bills (T-Bills) are government-backed securities, with a minimum purchase price of $1,000. They are offered in 3-month, 6-month, and 12-month lengths. You buy the T-bill at a discount which, when divided by the effective cost, equals your rate of interest. (So if you purchase a $10,000 T-bill for $9,300, your interest rate is $700, $9,300=.08 or 8 percent.) The discount is deposited immediately into your account, and the rest of the face value arrives on the day the bond matures. You have the option of rolling over your T-bill for another period. Since T-bills, like all offerings from the Treasury Department are backed by the full faith and credit of the U.S. Government, they're considered just about the safest investments around.
Trust Account - A Trust Account is an account used by brokers and escrow agents, in which funds for another individual are held separately, and not commingled with other funds.