main pot

Definition of "main pot"
  1. A method used in Internal Revenue Code section 1231 to establish tax liability by offsetting all relevant transactions to see whether the end result is a deficit or profit
How to use "main pot" in a sentence
  1. The accountant used the main pot method under Internal Revenue Code section 1231 to calculate the company's tax liability.
  2. With the application of main pot, all our transactions were netted to determine whether we had a loss or gain.
  3. Main pot helps in providing a clearer picture of the tax liability by netting all qualifying transactions.

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