tax deferral

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Tax Deferral

A situation in which one is not required to pay taxes one would otherwise owe until some date in the future. Most of the time, tax deferral refers to contributions to an IRA or a 401(k) or other retirement instrument. Under many structures, one is able to make contributions from one's pre-tax income; this means that taxation is deferred until withdrawals are made, generally after retirement.

tax deferral

The delay of a tax liability until a future date. For example, an IRA may result in a tax deferral on the amount contributed to the IRA and on any income earned on funds in the IRA until withdrawals are made. At the corporate level, accelerated depreciation of assets results in a delay in tax liabilities. Tax deferral, which is legal, means a postponement, not an elimination, of a tax liability.
References in periodicals archive ?
PROPERTY TAX DEFERRALS PRESENT A PARTICULAR CHALLENGE for mortgage servicers that have a responsibility to their investor to ensure that the value of the property protects the investor's lien interest.
If investors are blinded or distracted by the allure of tax deferrals, they may miss out on the opportunity to have greater flexibility for future earnings.
A key difference between a one-participant 401(k) and the more familiar SEP is the allowable contribution amount As with a traditional 401k) plan, a sole proprietor can make both a salary deferral as the employee and a company contribution as the employer, thus maximizing tax deferrals while simultaneously increasing retirement savings.
Approved in September 2008, the Investment Code, promotes foreign direct investment (FDI) and offers tax deferrals for new investors.
The Treasury's cash based budget produced an eye-catching TRY 4.6bn primary surplus in March thanks to the bulky TRY 6.2bn tax deferrals from February.
Medinets rounded discussed the benefits from tax deferrals through 1031 Exchanges.
However, tax deferrals in situations in which a number of assets are sold for an aggregate price can be limited when the assets include a variety of tax characteristics--i.e., inventory, items sold at a loss, and other items ineligible for installment sale treatment.
The authors explain how the investing phenomena of compounding interest, dollar-cost averaging and tax deferrals can work for you.
Essentially, this is a tax planning reference guide, written in a clear analytical style, identifing tax deductions, fringe benefits and tax deferrals under 1993 tax legislation.
Such issues include classification of foreign exchange gains and losses and their accounting treatments, interest rates and payments made on borrowings by the foreign subsidiaries, tax deferrals on foreign income and even selecting the location of reinvoicing centers.
Agriculture Minister Gerry Ritz announced today that the list of designated areas eligible for tax deferrals has been expanded.
Lawmakers will explore whether the state can afford to reinstate property tax deferrals for seniors with reverse mortgages in the February legislative session