Tax Terms Glossary | Gain Power With Knowledge

Naked Option: A naked option is where a call or put is sold without an offsetting position in the spot market.
Natural Person: A human being as opposed to a legal entity.
Net Income: Gross income minus certain expenses.
Net Operating Loss (NOL): The amount by which business expenses exceed income in a tax year.
Net Worth: Net worth is assets minus liabilities.
Non Recourse Debt: A debt for which an individual has no personal liability.
Notice of Deficiency: A notice of deficiency is a letter sent by the IRS to the taxpayer informing them that they have 90 days (150 in limited circumstances) to petition the tax court for a re-determination of the IRS's assertion.