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 ?
Note that tax-advantaged bond funds are not good investments for IRAs and 401(k)s because these are tax-deferred accounts, so the tax advantage is lost.
S corps enjoy many significant tax advantages, including:
The tax advantages discussed above offer unique opportunities to qualifying Farmers, not afforded to other businesses.
First, paired-share REITs do not enjoy a tax advantage over other real estate companies.
In that case, the shareholder-employees of the parent company might be able to participate in employee benefits offered by the lower tier company and receive the tax advantages that only a C corporation can provide its employees.
The Pension Protection Act of 2006 made the tax advantages of 529 plans permanent.
Congress authorized the creation of MSAs with federal tax advantages in 1996.
It also offers ownership at the end of the lease, provides tax advantages and reserves bank credit lines for other capital expenditures.
A QSTP offers these Federal tax advantages, which should boost their popularity:
Absent tax advantages, C corporations have advantages because of the LLC's restrictions on transferability of ownership and limited life.
Over the long term, however, tax advantages of certain prefunding vehicles (e,g.