Cafeteria Plans

An employee benefits plan that allows employees to customize their benefit package. Employees receive a fixed amount of dollars that can be allocated between several fringe benefits.

Capital Asset

A long-term asset, owned for personal or investment purposes, that is not bought or sold in the normal course of business. In general, the term includes fixed assets such as land, buildings, equipment, furniture, and fixtures.

Capital Gains

Gain realized from the sale of certain assets that represent the difference between the purchase price of an asset and the selling price when the difference is positive. Capital gains are separated into short-term capital gains and long-term capital gains. … Continued

Capital Gains Tax

Tax on the gain realized from the sale of capital assets such as stock, mutual funds, business interests, or other asset. Long-term capital gains tax rates apply to assets held longer than 12 months.

Capital Loss

Amount by which the proceeds from the sale of a capital asset are less than its cost basis.


Insurance company that actually underwrites and issues the insurance policy. The term refers to the fact that the company carries (or assumes) certain risks for the policyholder.


Refers to the process of shifting to a future taxable year those losses and other deductions that exceed limits for the current tax year.

Carryover Basis

Basis in property that may ‘carry over’ from the transferor to the transferee. Generally this occurs when there is an exchange of property, or property is transferred by gift.

Cash Surrender Value

The amount that is available to the owner if a life insurance policy is surrendered. The amount represents the cash value minus surrender charges and any outstanding loans due upon cancellation of the policy.

Cash Value

The cash within a permanent life insurance policy. Cash value is the premium paid less the cost of insurance policy. Cash value is also adjusted by any investment performance within the insurance policy.