De Minimis Tax Rule

Business, Legal & Accounting Glossary

Definition: De Minimis Tax Rule


De Minimis Tax Rule


Full Definition of De Minimis Tax Rule


Requires capital gains taxes are paid on bonds if the bond was purchased at a discount price which is greater than a quarter point per year between the day it was purchased and the maturity date. To calculate whether or not you need to pay de minimis tax on your bond, determine the number of years between the date you purchased the bond and the maturity date then multiple by .25. Subtract the amount you get from that calculation from the bond’s par value. If the amount is higher than the purchase price, you need to pay capital gains tax.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/de-minimis-tax-rule/
Modern Language Association (MLA):
De Minimis Tax Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 28, 2024 https://payrollheaven.com/define/de-minimis-tax-rule/.
Chicago Manual of Style (CMS):
De Minimis Tax Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/de-minimis-tax-rule/ (accessed: March 28, 2024).
American Psychological Association (APA):
De Minimis Tax Rule. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/de-minimis-tax-rule/

Definition Sources


Definitions for De Minimis Tax Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.