Accounting & Tax Definitions -- U

Ultra Vires: Traditionally, the purpose of a corporation was closely spelled out in its articles of incorporation. If the corporation acted beyond its described purposes these actions were unenforceable against the corporation or by the corporation. However, most modern statutes allow corporate purposes to be any lawful activity. Therefore, the importance of this doctrine has greatly diminished.

Unadjusted Basis: The basis of property for purposes of figuring depreciation under ACRS or MACRS. The unadjusted basis is the original cost or other basis without regard to salvage value.

Unanimous Written Consent: Nearly all states allow directors to act without a meeting if they each give their consent.

Underpayment Penalty: If a taxpayer did not pay enough tax on a timely basis during the year, he or she will have an underpayment of estimated tax, and may, depending on circumstances, be required to pay a penalty. The penalty, if any, is computed on Form 2210.

Unearned Income: Taxable income other than that received for services performed (earned income). Unearned income includes money received for the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions, alimony, unemployment compensation, and other income that is not earned.

Unlike Properties: Properties that are used for different purposes and/or are of different types.

Unstated Interest: Interest that must be calculated and the sale price reduced by this amount when interest is not stated in an installment agreement or the interest rate used is less than the applicable rate.