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

  1. The company's retirement plan offers a tax advantage, allowing employees to reduce their current tax liability.
  2. Investing in municipal bonds provides a tax advantage by exempting interest income from federal income tax.
  3. Donating to charitable organizations can yield a tax advantage by allowing deductions from taxable income.
  4. Homeowners can take advantage of the mortgage interest deduction to reduce their tax liability.
  5. Childcare expenses may qualify for a tax advantage, lowering the overall tax burden for working parents.
  6. Health savings accounts (HSAs) offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
  7. Annuities can provide a tax advantage through tax-deferred growth, allowing earnings to accumulate without immediate tax liability.
  8. Roth IRAs offer a tax advantage in retirement, allowing withdrawals to be tax-free, unlike traditional IRAs.
  9. Life insurance policies can provide a tax advantage through the death benefit, which is not subject to federal income tax.
  10. 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.