Taxable Events

A taxable event is an occurrence that triggers a tax liability for an individual or business. This can include actions like earning income, selling assets, receiving dividends, or even winning a prize. Essentially, whenever you gain something that increases your wealth or receive a certain type of income, it may be subject to taxation. The government uses these events to determine how much tax you owe. Understanding taxable events helps in managing finances and ensuring compliance with tax laws.