| Term |
Definition |
| Open Year |
A taxable year for which
the statute of limitations has not yet expired. |
| Operator |
One who holds the
working or operating rights in a gas or oil
activity and is obligated for the costs of
development and production. |
| Option |
An agreement to buy or
sell property on or before a specified date at an
established price. The sale or exchange of an
option to buy or sell property results in capital
gain or loss if the property is a capital asset. |
| Ordinary |
Common and accepted in
the general industry or type of activity in which
the taxpayer is engaged. It is one of the tests
for the deductibility of expenses incurred or
paid in connection with a trade or business; for
the production of income; for the management,
conservation, or maintenance of property held for
the production of income; or in connection with
the determination, collection, or refund of any
tax. |
| Ordinary Income or
Loss |
Income or loss that is
fully includable in (or deductible from) gross
income and that does not have the characteristics
of capital gain or loss. |
| Over the Counter |
The market for
securities issued by companies usually not listed
on any stock exchange. Over the counter (OTC)
trading is the principal market for U.S.
government and municipal bonds. |
| Owner-Employee |
A sole proprietor (self-employed
individual). |
