What Are Commuting Expenses? Commuting expenses are costs that are incurred as a result of the taxpayer’s regular means of getting back and forth to his or her place of employment. Commuting expenses can include car expenses, biking expenses, and public transportation costs. These costs are not tax-deductible in the U.S. Key Takeaways Commuting expense
What Is a Co-Mortgagor? When taking out a mortgage to purchase a home, it’s possible to have more than one borrower listed on the loan. A co-mortgagor shares in the repayment obligation and ownership of a property. They are also a co-owner of the property following the closing of the loan. Adding a co-mortgagor or
What Is a Companion Tranche? A companion tranche is a class, or type, of tranche, which is a portion of a debt or security. It is primarily associated as a tranche of a collateralized mortgage obligation (CMO), which also includes planned amortization class (PAC) tranches and targeted amortization class (TAC) tranches. Every CMO that has a
What Is a Company? A company is a legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction. The line of business the company is in
What Are Comparables? Comparables (comps) are used in valuations where a recently sold asset is used to determine the value of a similar asset. Comparables, often used in real estate to find the fair value of a home, are a list of recent asset sales that reflect the characteristics of the asset an owner is
What Are Comparable Store Sales? Comparable store sales refers to the revenue generated by a retail location in the most recent accounting period relative to the revenue it generated in a similar period in the past. Comparable store sales, or “comps,” are also referred to as “same-store sales” or “identical-store sales.” Key Takeaways Comparable store sales
What Is Comparative Advantage? Comparative advantage is an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners. Comparative advantage is used to explain why companies, countries, or individuals can benefit from trade. When used to describe international trade, comparative advantage refers to the products that a
What Is Comparative Advertising? Comparative advertising is a marketing strategy in which a company’s product or service is presented as superior when compared to a competitor’s. A comparative advertising campaign may involve printing a side-by-side comparison of the features of a company’s products next to those of its competitor. It may also feature a comparison
What Is a Comparative Market Analysis? A comparative market analysis (CMA) estimates a home’s price based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and help buyers make competitive offers. In addition, you can perform your own
What Is Comparative Negligence? Comparative negligence is a principle of tort law that applies to casualty insurance in certain states. Comparative negligence states that when an accident occurs, the fault and/or negligence of each party involved is based upon their respective contributions to the accident. This allows insurers to assign blame and pay insurance claims
