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.
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.
Neal and other lawmakers have introduced legislation that would effectively remove the tax advantages of these relocations;
Still another tax advantage to consider is the possible savings on state and local income taxes, which of course vary from state to state and from city to city throughout the country.
Fidelity Tax Advantage Fund has been ranked as a Five Star Fund in the category of 'Open Ended Equity Linked Savings Scheme (ELSS)' schemes for its 1 year performance till December 31, 2010.
This broader framework, combined with the triple tax advantages of health savings accounts, is driving innovations in both insurance and financial services.
These would have to be notified to Customs if the main purpose of entering into these arrangements, or one of the main purposes, was to gain a tax advantage.
To understand the position of employers, it is important to recall that the Tax Reform Act of 1954 provided a tax advantage to employers who provided a tax advantage to employers who provided health care benefits to their employees.
tax advantage is gained by routing income through a foreign corporation.