tax advantage (Meaning)
Wordnet
tax advantage (n)
an advantage bestowed by legislation that reduces a tax on some preferred activity
Synonyms & Antonyms of tax advantage
No Synonyms and anytonyms found
tax advantage Sentence Examples
- The company's retirement plan offers a tax advantage, allowing employees to reduce their current tax liability.
- Investing in municipal bonds provides a tax advantage by exempting interest income from federal income tax.
- Donating to charitable organizations can yield a tax advantage by allowing deductions from taxable income.
- Homeowners can take advantage of the mortgage interest deduction to reduce their tax liability.
- Childcare expenses may qualify for a tax advantage, lowering the overall tax burden for working parents.
- Health savings accounts (HSAs) offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
- Annuities can provide a tax advantage through tax-deferred growth, allowing earnings to accumulate without immediate tax liability.
- Roth IRAs offer a tax advantage in retirement, allowing withdrawals to be tax-free, unlike traditional IRAs.
- Life insurance policies can provide a tax advantage through the death benefit, which is not subject to federal income tax.
- Investing in stocks that qualify for the qualified dividend tax rate can yield a tax advantage, reducing tax liability on dividend income.
FAQs About the word tax advantage
an advantage bestowed by legislation that reduces a tax on some preferred activity
No synonyms found.
No antonyms found.
The company's retirement plan offers a tax advantage, allowing employees to reduce their current tax liability.
Investing in municipal bonds provides a tax advantage by exempting interest income from federal income tax.
Donating to charitable organizations can yield a tax advantage by allowing deductions from taxable income.
Homeowners can take advantage of the mortgage interest deduction to reduce their tax liability.
