Weatherby & Associates, PC

Bargain sale
A sale, usually among family members or between an individual and a charity, at less than the full fair market value of the property.

Basis


In income taxes, the amount representing the taxpayer's cost of an asset, against which any amount realized on its sale or other disposition is compared to determine the amount of taxable gain, if any, and which may be depreciated, if the asset is depreciable.

Basis, adjusted


See "Adjusted basis."

Beneficiary-owned S corporation trust
A trust that owns stock in one or more S corporations, and that may do so without jeopardizing the corporation's special tax status because the trust is treated as owned entirely by someone other than its grantor.

Beneficiary-owned trust

A trust that is treated as owned by someone other than its grantor, by virtue of § 678.

Buy-sell agreement

A contract or provision in corporate documents or a partnership agreement under which one or more persons or entities (the partnership or the corporation) agree to buy the interests of the other parties to the agreement, at certain times (usually in lieu of other lifetime sales or transfers and at death), at a stated price and on stated terms.