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 ?
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.
As NMTC Program Manager, Cox is responsible for managing tax advantage group NMTC accounts and those of its affiliate fund Greenville New Markets Opportunity (GNMO).
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.
Had the tax advantage not existed, domestic companies still would have raised additional capital because of the higher expected returns.
The paired-share REIT does not involve a tax advantage.
And lender-paid insurance is a "win-win" product because of its tax advantage and cost savings for consumers.
Many of our customers who invest in products such as the Tax Advantage Account, Emerald Funds and investments available through Barnett Securities want to save time and add value to their banking relationship," said John Perkner, Barnett director of Product Development.
This tax increase will add to the tax advantage of tax-deferred savings of greater fund accumulations than under taxed investments.
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.
Nevertheless, these plans are experiencing an annual growth rate of approximately 25% without any tax advantages.
In an era in which tax-deferral transactions are subject to intensified scrutiny, businesses are challenged to bring ever-greater discipline to the design and implementation of legitimate employee benefit arrangements that offer tax advantages.