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.
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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.
Merlynn could create a private land trust with protective covenants, which would provide her with additional tax advantages. Of course, her acreage must qualify as an "outstanding natural area." thereby having natural character in order to meet certain criteria governing the 1031.
The applicants also argued that although the measures did not explicitly grant new tax exemptions to agricultural cooperatives, they extended existing tax advantages beyond those enjoyed by their counterparts and therefore amounted to new state aid.
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.
Among those with children under 12, 90% cited federal tax-free withdrawals, 69% cited ease of set up, 54% cited low cost and 50%, state tax advantages.
Mr Darling, who is taking on a new role as "Cabinet champion for over fifties", will unveil plans on Thursday to raise the minimum age for tax advantages on private and occupational pensions from 50 to 55.
The new video tape discusses the tax advantages of making lifetime gifts, the benefits available to those who allow property to pass at death as part of their estates, and developments of current Internal Revenue Code provisions and their impact on transfers of property.
A supporting organization is like a private foundation but has far superior tax advantages. Donors can claim the fair market value of highly appreciated stock and gain an annual tax deduction of up to 30 percent of their adjusted gross income, with a five-year carryover.
Chief Blue says that with the settlement money the tribe wants to create a replica of a 400-year-old Catawba village as a tourist attraction, and because of the settlement's tax advantages, also hopes to start an industrial park.
Q Last week you mentioned venture capital trusts and stated that they had capital gains tax advantages. I thought that this had now ended.
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. This is particularly true for businesses with very few employees.
Under the LTC provision, an annuity with a qualified LTC rider would have the same tax advantages as current stand-alone LTC benefits.