Taxable refers to the quality or characteristic of being subject to taxation. It is an adjective that describes any entity, such as an individual, business, or property, that is liable to pay taxes to the government based on certain criteria defined by tax laws and regulations.
In most jurisdictions, taxation is imposed on various types of income, assets, transactions, and consumption. Taxable income refers to the portion of an individual or business's total income that is subject to taxation. This income may include wages, salaries, bonuses, commissions, rental income, investment gains, and other sources of revenue. The taxable amount is calculated by deducting allowable tax deductions, exemptions, and credits from the total income.
Similarly, taxable assets or properties are those that are liable to be taxed. Assets can include real estate, stocks, bonds, vehicles, and other valuable possessions that are subject to taxation either through property taxes, capital gains taxes, or other applicable taxes.
The term taxable is also used in the context of taxable transactions, which are those that are subject to a tax levied by the government on specific activities or goods. Examples of taxable transactions include the sale and purchase of goods and services, financial transactions, and international trade.
Overall, the term taxable serves as a means to categorize and identify the entities, income, assets, and transactions that are legally obligated to contribute to the public revenue through the payment of taxes.
