Passive Activity
Generally, passive activities include trade or business activities in which you did not materially participate for the tax year, as well as rental activities (regardless of your participation). Losses from passive activities may be limited.
Personal Interest
Personal interest is not deductible. Examples of personal interest include credit card and installment interest incurred for personal expenses and interest on a loan to purchase an automobile for personal use. But you may be able to deduct interest you pay on a qualified student loan.
Personal Identification Number (PIN)
Allows taxpayers to “sign” their tax returns electronically. The PIN, a five-digit self-selected number, ensures that electronically submitted tax returns are authentic. Most taxpayers can qualify to use a PIN
Certain charges paid to obtain a home mortgage. Points may be deductible as home mortgage interest if you itemize deductions. If you can deduct all of the interest on your mortgages, you may be able to deduct all of the points paid on the mortgage. If you pay points to get a loan (including a mortgage, second mortgage, line of credit, or a home equity loan), do not add the points to the basis of the related property.
Premature Distributions
Withdrawals from an employer retirement plan or an IRA that are subject to a 10% additional tax if you are under a certain age (unless certain exceptions are met).
Prepaid Income
Prepaid income, such as prepaid rent or interest or advances for services to be performed at a later time, is generally included in gross income in the year you receive it.
Property Class
A category for property under the Modified Accelerated Cost Recovery System (MACRS). It generally determines the depreciation method, recovery period, and convention.