- Tax Benefit
- A tax benefit is an allowable deduction on a tax return intended to reduce a taxpayer's burden while typically supporting certain types of commercial activity. A tax benefit allows some type of adjustment benefiting a taxpayer's tax liability.
Tax benefits provide an advantage to the taxpayer while typically benefiting another entity. An example of a tax benefit is an energy tax credit; taxpayers can qualify for certain tax credits for installing energy efficient systems in their homes, which benefits the environment while reducing the demand for fuel. Quite often tax benefits may be only available for a certain time period or tax year.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
tax benefit — UK US noun [C] (also tax advantage) TAX ► a reduction in the amount of tax that a person or organization would normally have to pay in a particular situation, for doing something that the government is trying to encourage: »There are some very… … Financial and business terms
tax benefit — noun a tax deduction that is granted in order to encourage a particular type of commercial activity • Syn: ↑tax break • Hypernyms: ↑tax write off, ↑tax deduction, ↑deduction … Useful english dictionary
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tax benefit rule — The rule that the recovery by a taxpayer of any item previously deducted on his income tax return is taxable in the year of recovery to the extent that the original deduction or credit reduced his income tax liability in a prior year or years.… … Ballentine's law dictionary
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