safe harbor

Also found in: Dictionary, Thesaurus, Legal, Wikipedia.

Safe harbor

Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.

Safe Harbor

1. An anti-takeover measure in which a potential target company buys a subsidiary in an industry that is so strictly regulated that it makes acquiring the target company difficult and/or expensive.

2. Legal protection from a lawsuit. Regulators often apply safe harbor to some corporate actions as long as those actions are taken in good faith.

safe harbor

1. A regulation that protects individuals or corporations from the legal consequences of certain actions they undertake. For example, firms filing forecasts with the SEC have a safe harbor from individuals or businesses that use the forecasts and are subsequently damaged (that is, they lose money), as long as the forecasts were prepared in good faith.

2. A tactic in which the target of an unfriendly takeover makes itself less attractive by taking a specific action.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

safe harbor

A system of rules that, if followed exactly, will provide protection from the effects of other laws. For example, in a 1031 like-kind exchange, the use of a qualified intermediary and compliance with strict IRS deadlines will result in the ability to avoid paying taxes at the time of a sale.This is the safe harbor from normal tax liability rules.There are other ways to complete a like-kind exchange without paying taxes,but the seller embarks upon those uncharted waters at its own peril. A very slight miscalculation could result in the imposition of large taxes, penalties, and interest at a later date.

Mentioned in ?

References in periodicals archive ?

Applying the safe harbor: T begins a new activity in year 1 and incurs losses from that activity in years 1,3, and 6.

Avoiding the hobby loss trap after the TCJA

Cochran and Ganze are suing Seefried, Skinner, Partner Colorado CU, Safe Harbor Services and others under two claims.

Lawsuit Accuses CU CEO Who Pioneered Pot Banking of Drug Use

I would like to ask legislators, regulators, and academics to look at the dialogue on costs and benefits, and consideration of the collateral effects of safe harbors that preceded their enactment in jurisdictions throughout the world.

Subsidising liquidity or subsidising markets? Safe harbors, derivatives, and finance

Either way, the safe harbor contributions can be limited to employees earning less than $120,000 in 2017.

Safe harbor 401(k) plans for small companies

Underwood will succeed Marshall Funk, Safe Harbor's CEO and co-founder who has been named chief

Safe Harbor Marinas Acquires Connecticut Marina Operator Brewer Yacht Yard Group

The safe harbor is one way for plan sponsors to help participants maintain their accounts securely in a tax-sheltered retirement fund-and eliminate the burden on themselves.

Safe Harbor IRAs

that registered on the Department of Commerce's Safe Harbor list were also permissible.

European decision invalidates Safe Harbor Framework for EU/US data transfers

The taxpayer can't use actual expenses in a year in which the simplified safe harbor method is chosen.

The simplified home office deduction: there's an alternative method for calculating the home office deduction that simplifies the process for taxpayers

Forbes contributor Emma Woollacott pointed out that the European Parliament voted some time ago to suspend the Safe Harbor but the European Commission has not done so, "preferring instead to hold the threat of suspension over the United States' head."

U.S. companies charged with violating safe harbor

In response, TEI (and others) recommended that the IRS and Treasury Department establish a 15-year safe harbor amortization period for acquisitive transaction costs under the authority of Treas.

Success-based fees: Rev. Proc. 2011-29 safe harbor

No depreciation is allowed for the years in which the safe harbor is elected, but it is permitted in years in which the actual-expense method is used.

Simplified home office deduction safe harbor now available

The safe harbor method can be used whether you own or rent your home.

Home work: do you qualify for the IRS' new home office deduction?

Full browser ?

CITE

Site: Follow: Share:

Open / Close