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	Tax Principles of Income Tax   Property Taxation: Depreciation Taxation of Profit Adjusted Basis Home Mortgage Interest and Points Deduction   1031 EXCHANGES Capital Gains Tax Corporate Tax Corporation Dividend Tax Double Taxation European Union Savings Taxation Homeowners exemption Foreign Investment in Real Property Tax Act. Flat Tax Principles of Income Tax Income taxes Inheritance Tax Installment Sales Poll Tax Progressive Tax Property taxes California Propositions Purposes and Effects of Taxation Retirement Tax Sales Tax Sales leaseback Tariff Tax Credit, Exemption Equivalent and Tax Tax Rates Tax Treaty Direct and Indirect Taxation Value Added Tax Income tax is a charge levied or tax on earnings, which is money that individuals, corporations, trusts or other legal entities receive in different ways and from different sources. The 'tax net' refers to the different types of money payments on which taxes are charged. Generally, taxes are charged on personal earnings or wages, welfare donations received, capital gains, as well as business income. While the rates for different types of income vary, some types of income may not be taxed at all. For instance, capital gains may be taxed when realized (for e.g. when shares are sold) or when incurred (for e.g. when shares appreciate in value). Business income may only be taxed if it is of a certain value or above it or else based on the manner in which it is paid. Some kinds of income, such as interest on bank savings, may be considered to be personal earnings (similar to wages) or as a realized property gain (similar to selling shares). In some tax systems the exact criteria based on which income is classified as personal earnings may be strictly defined such as a requirement that labor, skill, or investment was required (e.g. wages); while in others they may be defined broadly to include windfalls (e.g. gambling wins). Tax rates may be also be classified as either progressive or flat. A progressive tax taxes a differential amount based on the income that has been earned. For instance, the first $10,000 in earnings may be taxed at 5%, the next $10,000 at 10%, and any more income at 20%. On the contrary, a flat tax taxes all earnings at the same rate. A tax system may use both progressive and flat taxes for different types of income. Usually, income tax systems also have deductions available. These deductions help lessen the total tax liability by reducing total taxable income. Income tax systems may also allow losses from one type of income to be counted against another. For instance, a loss on the stock market may be deducted against tax paid on wages. Other tax systems incorporate a system of isolating the loss, such that business losses can only be deducted against business tax, by carrying forward the loss to tax years to come.