In the context of mortgage-backed securities, half-life refers to the point in time at which half of the principal amount of the security has been repaid.
Head of Household
[hed ov HOWS-hold]
What is the definition of Head of Household?
A tax filing status for individuals who are unmarried and provide more than half of the financial support for their household, which may include dependents or other qualifying relatives. This status offers more favorable tax rates and higher deductions compared to single filers.
Using Head of Household in an Example
A single parent who earns the majority of the income and supports their children can qualify for the head of household status, which allows for lower tax rates and higher potential deductions than filing as a single taxpayer.
Using Head of Household in a sentence
During tax preparation, Jane confirmed she could file as head of household because she supported her two children and her elderly mother, providing the majority of household expenses.
Related Terms
Hedge
A transaction or series of transactions undertaken to reduce the risk of an investment, often by taking an offsetting position in a related security.
Held-to-Maturity Security
A debt security that a company has the intent and ability to hold until its maturity date, at which point it is expected to be paid in full.
High-Low Method
A technique used in cost accounting to separate fixed and variable costs associated with a business activity by analyzing the highest and lowest points of activity and their corresponding costs.
High-Premium Convertible Debenture
A type of bond that features a long-term maturity, offers a high premium for conversion into common stock, and provides a competitive interest rate.
Historical Cost
The original cost of an asset to an entity at the time of its acquisition, recorded on the financial statements.
Holding Period
The duration between the acquisition and the sale or disposition of an asset by a taxpayer.
Hope Scholarship Credit
A tax credit available for the first two years of post-secondary education, providing a maximum credit of $1,500 per student per year, contingent upon meeting specific eligibility requirements.
Horizontal Analysis
A financial analysis technique that compares line items in financial statements over a series of periods, calculating both the dollar amount and percentage changes from one period to the next.
Deferred.com Resources
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