Tax Advantage


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Tax Advantage

Any act or structure that reduces the amount of tax one pays. For example, one may derive a tax advantage by investing in a tax-exempt bond as opposed to a corporate bond (on which one pays taxes). Numerous tax advantages are built into tax codes in order to encourage certain behavior. For example, in the United States, one derives a tax advantage from writing off the interest on one's mortgage. This structure exists to encourage homeownership.
References in periodicals archive ?
Sandeep Kothari, Portfolio Manager, Fidelity Tax Advantage Fund and Fidelity Equity Fund, remarked, "Our philosophy is to look at the long-term prospects for a business, the scalability of the business model, management track record and valuations.
If a client has taken advantage of the options in the previous steps and wants to accumulate more retirement savings, it's time to consider investing in an annuity Annuities offer deferred taxes on earnings until payments are received but do not provide any of the other tax advantages that investments in earlier steps do.
The requirement for tax advantages to be the 'main, or one of the main purposes' is also rather ambiguous, and it appears likely that arguments over these points will reach the Courts in the near future.
Had the tax advantage not existed, domestic companies still would have raised additional capital because of the higher expected returns.
These conditions are that no premium fee is involved relating to a significant extent to the tax advantage or contingent on obtaining it and that the tax advantage expected to arise does not arise from an element that the promoter of the scheme may wish to keep confidential from other promoters.
The paired-share REIT does not involve a tax advantage.
The tax advantages that come with many types of investments can be strong medicine to help keep you in good financial health.
When several of its airplanes were destroyed, the company was unable to take maximum tax advantage of the write-offs due to chronic losses over a period of years.
This tax advantage together with the compounding effect allows the accumulation of greater funds under TDS than under ordinary savings plans.
Similar to energy-saving investments, MLP energy infrastructure companies that operate long-haul, interstate pipelines with minimal commodity risks offer investors the tax advantage of dividends with a very high return of capital tax character.
The European Ombudsman Emily O'Reilly, has welcomed the European Commission's decision to open an investigation into the allegedly unfair tax advantages accorded to Real Madrid CF, Barcelona CF, Athletic Club Bilbao, and Club Atletico Osasuna.
The scheme gave tax advantages to groups of investors that financed ship purchases.