Q
 

qualified opinion (financial statement audit)
See opinion.


qualified domestic relations order (QDRO)
A court order that meets certain IRS requirements and that assigns all or a portion of a participant's qualified pension benefits to a spouse or ex-spouse to satisfy alimony and/or child support obligations.


qualified retirement plans
A retirement plan that qualifies for favorable income tax treatment, such as a 401(k) plan. If your employer has a retirement plan, contribute the maximum if you possibly can. This is the best way to help insure that you will have a properly funded retirement.


quitclaim deed
A deed to convey any interest, apparent interest, or claim that an individual has in a piece of property. Often used to clean up a clouded title. For more specifics on the various kinds of deeds, see your attorney.
 

R

rate of return
The annual return on an investment, stated as a percentage. For example, six dollars earned in one year on one hundred dollars gives a 6% rate of return.
See also yield.


ready cash items
Cash, certificates of deposit, stocks, bonds, and other investments that have clear market value and can be turned into cash in very short order.


real estate investment trust (REIT)
A company that specializes in real estate investments. A REIT must meet strict ownership, investment, and income distribution tests to qualify for tax treatment as a REIT. REIT's allow individual investors to diversify their real estate investments.


Realtor
A designation reserved for those who are affiliated with the National Association of Realtors.


recapitalization
A substantial restructuring of the stock and/or bonds of a corporation by amending the articles of incorporation or by merger with a parent or subsidiary.


reinsurance
An agreement between two insurance companies to share the risk taken on by one company for insurance policies where the risk of loss is substantial.


related taxpayers
The tax law does not allow tax losses between certain related taxpayers. The prohibited relationship can be that of family members, a shareholder and his or her corporation, or the cross ownership of two or more legal entities such as corporations and partnerships.


remainderman
The one entitled to an interest in property after the termination of a life estate. For example, a surviving spouse may have the use of real estate until her death, at which time the remainder interest passes to her child (the remainderman).
See also life tenant.


residential property
Residential property includes houses, condos, trailers, and boats if they have sleeping, eating, and bathroom facilities. If you have more than one residence, only one will quality for the preferred tax treatment as your principal residence. Your principal residence will be the place where you spent the greatest part of the year.


retained earnings
A balance sheet account that shows the accumulated earnings of a corporation from its inception, minus total dividends distributed.


reviewed financial statements
See compiled financial statements and audit.


reverse mortgage
A source of funds for older people who have equity in their homes and need additional retirement money. The homeowner gets monthly payments that add to the mortgage balance. When the homeowner dies, sells the home, or moves out, the mortgage is paid off from the proceeds of the home sale. A reverse mortgage allows older people to remain in their homes while borrowing against the equity.


revocable trust
A trust that can be altered or terminated by the grantor (the person who established it).


Roth IRA
A Roth IRA is treated like a traditional IRA except for several important differences. Contributions to a Roth are never tax-deductible. Qualified withdrawals from a Roth are not taxable. There are income limits that determine who may set up and contribute to a Roth. Contact us for assistance in determining whether or not a Roth is better for you than a traditional IRA.
 

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