Legal Definitions - return

The term "return" has several distinct meanings in legal and related contexts:

• 1. Court Officer's Report on Service or Execution:

  In a legal context, a "return" refers to the formal report made by a court officer (such as a sheriff or process server) to the court that issued a legal document. This report details what actions were taken in an attempt to serve the document (like a summons or subpoena) or to execute a court order (like seizing property to satisfy a judgment), and the outcome of those actions.

  • Example 1: A sheriff receives a court order to serve a lawsuit summons on a defendant. After several attempts, the sheriff successfully delivers the summons. The sheriff then files a return with the court, stating the date, time, and manner in which the summons was served, confirming that the defendant was properly notified.

    Explanation: This illustrates the sheriff's official report back to the court, confirming the successful completion of a legal task as required by the court.

  • Example 2: A process server is tasked with delivering a subpoena to a witness. Despite diligent efforts, the witness cannot be located at the provided address. The process server then submits a return to the court, indicating that the subpoena could not be served and detailing the attempts made.

    Explanation: Here, the return is the formal notification to the court that the legal document could not be delivered, explaining the reasons for the failure to serve.

• 2. Tax Filing:

  This refers to a formal document submitted to a government tax authority (like the IRS) that reports income, expenses, and other financial information to calculate tax liability.

  • Example 1: An individual compiles all their income statements, deductions, and credits from the past year and submits their annual income tax return to the federal government by the April deadline.

    Explanation: This is the common usage of "return" as the official document used to report financial information for tax purposes.

  • Example 2: A small business owner calculates their quarterly sales and expenses and files a state sales tax return, remitting the collected sales tax to the state revenue department.

    Explanation: This demonstrates a business's obligation to file a "return" to report and pay specific taxes to a government entity.

• 3. Election Results:

  Often used in the plural ("returns"), this refers to the official compilation and reporting of votes cast in an election or referendum.

  • Example 1: On election night, news channels eagerly await the latest election returns from various precincts to project the winners of congressional races.

    Explanation: This refers to the ongoing official reports of vote counts as they are tabulated and released to the public.

  • Example 2: After a local bond measure vote, the county clerk's office publishes the final certified returns, detailing the total number of "yes" and "no" votes cast in each district.

    Explanation: This illustrates the formal, final report of voting outcomes for a specific election.

• 4. Financial Profit or Yield:

  In a financial or business context, "return" signifies the profit or income generated from an investment or business activity. This term encompasses several specific concepts:

  • General Profit or Yield: The overall gain or income from an investment.
    • Example 1: An investor purchases shares in a company and, after a year, sells them for a higher price, earning a significant return on their investment.

      Explanation: The "return" here is the financial gain or profit realized from the stock market transaction.

    • Example 2: A real estate developer calculates the potential rental income and property value appreciation to estimate the expected return from building a new apartment complex.

      Explanation: This refers to the anticipated financial gain or yield from a business venture, often used in planning and evaluating profitability.

  • Capital Return (or Return of Capital): Revenue that represents the repayment of the original cost or capital invested, rather than taxable income.
    • Example: A limited partnership distributes funds to its investors. A portion of these funds is designated as a return of capital because it represents the repayment of the partners' initial investment, not profit. This portion is typically not immediately taxable as income.

      Explanation: This specific type of "return" indicates that the money received is merely getting back the initial investment, not earning new profit.

  • Net Return: The profit on an investment after all associated expenses (like fees, taxes, or operating costs) have been deducted.
    • Example: After selling a rental property, the owner calculates the total sale price, then subtracts the original purchase price, renovation costs, agent commissions, and capital gains taxes to determine their final net return from the sale.

      Explanation: The "net return" provides a clear picture of the actual profit remaining after all costs are accounted for, giving a more accurate measure of financial success.

  • Fair Return on Investment: The usual or reasonable profit expected in a particular business or industry, especially for regulated entities like public utilities.
    • Example: A state utility commission reviews a power company's proposed rate increases to ensure that the company can achieve a fair return on investment, allowing it to cover operating costs, invest in infrastructure, and provide a reasonable profit to shareholders without overcharging consumers.

      Explanation: This concept ensures that regulated businesses can remain viable and attractive to investors while also protecting consumers from excessive pricing, balancing profit with public interest.