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Tax gain-loss harvesting
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Tax gain-loss harvestingA process of selling securities at a loss to offset a capital-gains tax liability.
RELATED TERMS--------------------------------------
Securities
Saleable papers, traded on stock exchanges, that yield an income (dividend, interest, etc.).
Loss
The opposite of gain.
Offset
Elimination of a long or short position by making an opposite transaction.
SIMILAR TERMS--------------------------------------
Tax accounting
Calculating an individual's or a company's liabilities for tax.
Tax and loan account
An account at a private bank, held in the name of the district Federal Reserve Bank, which holds operating cash for the business of the US Treasury.
Tax anticipation bills (Tabs)
Special bills that the Treasury occasionally issues that mature on corporate quarterly income tax dates and can be used at face value by corporations to pay their tax liabilities.
Tax anticipation notes (Tans)
Notes issued by states or municipalities to finance current operations in anticipation of future tax receipts.
Tax arbitrage
Trading that takes advantage of a difference in tax rates or tax systems as the basis for profit.
Tax audit
Audit by the IRS or other tax-collecting agency to determine whether a taxpayer has paid the correct amount of tax.
Tax avoidance
The practice of reducing tax liabilities to a minimum by legal means.
Tax base
The assessed value of the taxable property, assets, and income within a specific geographic area.
Tax basis
1) In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes. 2) In the context of investments, the price of a stock or bond plus the broker's commission.
Tax books
Records kept by a firm's management that follow IRS rules. The books follow Financial Accounting Standards Board rules.
Tax bracket
The percentage of tax obligation for a particular taxable income.
Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back.
Tax clientele
Categories of investors who have specific preferences for debt or equity because of differences in their personal tax rates.
Tax court
A court of law whose sole jurisdiction is to decide litigation involving federal income, death, and other taxes.
Tax credit
A direct dollar-for-dollar reduction in tax allowed for expenses such as child care and R&D for building low-income housing.
Tax deductible
The effect of creating a tax deduction, such as charitable contributions and mortgage interest.
Tax deduction
An expense that a taxpayer is allowed to deduct from taxable income.
Tax deferral option
Allowing the capital gains tax on an asset to be payable only when the gain is realized by selling the asset.
Tax deferred income
Dividends, interest, and unrealized capital gains on investments in an account such as a qualified retirement plan, where income is not subject to taxation until a withdrawal is made.
Tax deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to be made and accumulate tax-free until they are paid out as benefits.
Tax differential view (of dividend policy)
The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends.
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
Legislation to increase tax revenue by eliminating various taxation loopholes and instituting tougher enforcement procedures in collecting taxes.
Tax equivalent yield
The pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond.
Tax evasion
The practice of making false tax declarations (which is of course illegal).
Tax exempt bond
A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.
Tax exempt income
Dividends and interest not subject to federal and, in some cases, state and local income taxes.
Tax exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.
Tax exempt money market fund
A money market fund that invests in short-term tax-exempt municipal securities.
Tax exempt sector
The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.
Tax exempt security
An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district.
Tax free acquisition
A merger or consolidation in which the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and each seller who receives only stock does not have to pay any tax on the gain realized until the shares are sold.
Tax haven
A financial center offering low taxes to non-residents, in which multinational companies are encouraged to set up offices.
Tax haven affiliate
A wholly owned entity in a low-tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986.
Tax holiday
A reduced tax rate that a government provides as an inducement to foreign direct investment.
Tax home
An individual's primary place of work or residence. This is used when determining tax for travel or transportation expenses.
Tax liability
The amount in taxes a taxpayer to the government.
Tax lien
The right of the government to enforce a claim against the property of a person owing taxes.
Tax lien certificate
A certificate of claim against property that has a lien placed upon it as a result of unpaid property taxes.
Tax loss
A way of avoiding taxation by bringing forward capital expenditure into a tax year.
Tax loss carryback, carryforward
A tax benefit that allows business losses to be used to reduce tax liability in previous and or following years.
Tax lot accounting
A record keeping technique that traces the dates of purchase and sale, cost basis, and transaction size for each security in your portfolio, even if you make more than one trade in the same security.
Tax neutrality
Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.
Tax planning
Devising strategies throughout the year in order to minimize tax liability.
Tax preference item
Items that must be included when calculating the alternative minimum tax.
Tax preparation services
Firm that prepare tax returns for a fee.
Tax rate
The percentage of tax paid for different levels of income.
Tax reduction strategy
A source of competitive advantage that depends on differences in the tax rates imposed in different locations.
Tax Reform Act of 1976
Legislation aimed at tightening provisions relating to taxation, including changes in the capital gains tax laws.
Tax Reform Act of 1984
Legislation enacted as part of the Deficit Reduction Act of 1984 to reduce the federal budget deficit. Among its provisions are a decrease in the minimum holding period for assets to qualify for long term capital gains treatment from one year to six months.
Tax Reform Act of 1986
A 1986 law involving a major overhaul of the US tax code.
Tax refund
Money back from the government when too much tax has been paid or withheld from a salary.
Tax return
The tax form used to file income taxes to the IRS.
Tax schedules
Tax forms used to report itemized deductions, dividend and interest income, profit or loss from a business, capital gains and losses, supplemental income and loss, and self employment tax.
Tax selling
Selling of securities to realize losses that will offset capital gains and reduce tax liability.
Tax shelter
A way of reducing or postponing taxation, by spending income on a pension plan, a life insurance policy, etc.
Tax sheltered annuity
A type of retirement plan under Section 403(b) of the Internal Revenue Code that permits employees of public educational organizations or tax-exempt organizations to make before tax contributions via a salary reduction agreement to a tax-sheltered retirement plan.
Tax shield
The reduction in income taxes that results from taking an allowable deduction from taxable income.
Tax software
Computer software designed to assist taxpayers in filling out tax returns and minimizing tax liability.
Tax status election
The decision of the status under which to file a tax return.
Tax straddle
Technique used in futures and options trading to create tax benefits.
Tax swap
Swapping two similar bonds to receive a tax benefit.
Tax table
A table that shows the amount of tax payable depending on an individual's income bracket.
Tax timing option
The option to sell an asset and claim a loss for tax purposes or not sell the asset and defer the capital gains tax.
Tax umbrella
Tax loss carry forwards from previous business losses that form a tax shelter for profits earned in current and future years.
Tax year
The 12 month period for which you are filing your tax return.
PREVIOUS AND NEXT TERMS--------------------------------------
Tax exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.
Tax exempt money market fund
A money market fund that invests in short-term tax-exempt municipal securities.
Tax exempt sector
The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.
Tax exempt security
An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district.
Tax free acquisition
A merger or consolidation in which the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and each seller who receives only stock does not have to pay any tax on the gain realized until the shares are sold.
Tax gain-loss harvesting
Tax haven
A financial center offering low taxes to non-residents, in which multinational companies are encouraged to set up offices.
Tax haven affiliate
A wholly owned entity in a low-tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986.
Tax holiday
A reduced tax rate that a government provides as an inducement to foreign direct investment.
Tax home
An individual's primary place of work or residence. This is used when determining tax for travel or transportation expenses.
Tax liability
The amount in taxes a taxpayer to the government.
RELATED TERMS--------------------------------------
Securities
Saleable papers, traded on stock exchanges, that yield an income (dividend, interest, etc.).
Loss
The opposite of gain.
Offset
Elimination of a long or short position by making an opposite transaction.
SIMILAR TERMS--------------------------------------
Tax accounting
Calculating an individual's or a company's liabilities for tax.
Tax and loan account
An account at a private bank, held in the name of the district Federal Reserve Bank, which holds operating cash for the business of the US Treasury.
Tax anticipation bills (Tabs)
Special bills that the Treasury occasionally issues that mature on corporate quarterly income tax dates and can be used at face value by corporations to pay their tax liabilities.
Tax anticipation notes (Tans)
Notes issued by states or municipalities to finance current operations in anticipation of future tax receipts.
Tax arbitrage
Trading that takes advantage of a difference in tax rates or tax systems as the basis for profit.
Tax audit
Audit by the IRS or other tax-collecting agency to determine whether a taxpayer has paid the correct amount of tax.
Tax avoidance
The practice of reducing tax liabilities to a minimum by legal means.
Tax base
The assessed value of the taxable property, assets, and income within a specific geographic area.
Tax basis
1) In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes. 2) In the context of investments, the price of a stock or bond plus the broker's commission.
Tax books
Records kept by a firm's management that follow IRS rules. The books follow Financial Accounting Standards Board rules.
Tax bracket
The percentage of tax obligation for a particular taxable income.
Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back.
Tax clientele
Categories of investors who have specific preferences for debt or equity because of differences in their personal tax rates.
Tax court
A court of law whose sole jurisdiction is to decide litigation involving federal income, death, and other taxes.
Tax credit
A direct dollar-for-dollar reduction in tax allowed for expenses such as child care and R&D for building low-income housing.
Tax deductible
The effect of creating a tax deduction, such as charitable contributions and mortgage interest.
Tax deduction
An expense that a taxpayer is allowed to deduct from taxable income.
Tax deferral option
Allowing the capital gains tax on an asset to be payable only when the gain is realized by selling the asset.
Tax deferred income
Dividends, interest, and unrealized capital gains on investments in an account such as a qualified retirement plan, where income is not subject to taxation until a withdrawal is made.
Tax deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to be made and accumulate tax-free until they are paid out as benefits.
Tax differential view (of dividend policy)
The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends.
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
Legislation to increase tax revenue by eliminating various taxation loopholes and instituting tougher enforcement procedures in collecting taxes.
Tax equivalent yield
The pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond.
Tax evasion
The practice of making false tax declarations (which is of course illegal).
Tax exempt bond
A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.
Tax exempt income
Dividends and interest not subject to federal and, in some cases, state and local income taxes.
Tax exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.
Tax exempt money market fund
A money market fund that invests in short-term tax-exempt municipal securities.
Tax exempt sector
The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.
Tax exempt security
An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district.
Tax free acquisition
A merger or consolidation in which the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and each seller who receives only stock does not have to pay any tax on the gain realized until the shares are sold.
Tax haven
A financial center offering low taxes to non-residents, in which multinational companies are encouraged to set up offices.
Tax haven affiliate
A wholly owned entity in a low-tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986.
Tax holiday
A reduced tax rate that a government provides as an inducement to foreign direct investment.
Tax home
An individual's primary place of work or residence. This is used when determining tax for travel or transportation expenses.
Tax liability
The amount in taxes a taxpayer to the government.
Tax lien
The right of the government to enforce a claim against the property of a person owing taxes.
Tax lien certificate
A certificate of claim against property that has a lien placed upon it as a result of unpaid property taxes.
Tax loss
A way of avoiding taxation by bringing forward capital expenditure into a tax year.
Tax loss carryback, carryforward
A tax benefit that allows business losses to be used to reduce tax liability in previous and or following years.
Tax lot accounting
A record keeping technique that traces the dates of purchase and sale, cost basis, and transaction size for each security in your portfolio, even if you make more than one trade in the same security.
Tax neutrality
Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.
Tax planning
Devising strategies throughout the year in order to minimize tax liability.
Tax preference item
Items that must be included when calculating the alternative minimum tax.
Tax preparation services
Firm that prepare tax returns for a fee.
Tax rate
The percentage of tax paid for different levels of income.
Tax reduction strategy
A source of competitive advantage that depends on differences in the tax rates imposed in different locations.
Tax Reform Act of 1976
Legislation aimed at tightening provisions relating to taxation, including changes in the capital gains tax laws.
Tax Reform Act of 1984
Legislation enacted as part of the Deficit Reduction Act of 1984 to reduce the federal budget deficit. Among its provisions are a decrease in the minimum holding period for assets to qualify for long term capital gains treatment from one year to six months.
Tax Reform Act of 1986
A 1986 law involving a major overhaul of the US tax code.
Tax refund
Money back from the government when too much tax has been paid or withheld from a salary.
Tax return
The tax form used to file income taxes to the IRS.
Tax schedules
Tax forms used to report itemized deductions, dividend and interest income, profit or loss from a business, capital gains and losses, supplemental income and loss, and self employment tax.
Tax selling
Selling of securities to realize losses that will offset capital gains and reduce tax liability.
Tax shelter
A way of reducing or postponing taxation, by spending income on a pension plan, a life insurance policy, etc.
Tax sheltered annuity
A type of retirement plan under Section 403(b) of the Internal Revenue Code that permits employees of public educational organizations or tax-exempt organizations to make before tax contributions via a salary reduction agreement to a tax-sheltered retirement plan.
Tax shield
The reduction in income taxes that results from taking an allowable deduction from taxable income.
Tax software
Computer software designed to assist taxpayers in filling out tax returns and minimizing tax liability.
Tax status election
The decision of the status under which to file a tax return.
Tax straddle
Technique used in futures and options trading to create tax benefits.
Tax swap
Swapping two similar bonds to receive a tax benefit.
Tax table
A table that shows the amount of tax payable depending on an individual's income bracket.
Tax timing option
The option to sell an asset and claim a loss for tax purposes or not sell the asset and defer the capital gains tax.
Tax umbrella
Tax loss carry forwards from previous business losses that form a tax shelter for profits earned in current and future years.
Tax year
The 12 month period for which you are filing your tax return.
PREVIOUS AND NEXT TERMS--------------------------------------
Tax exempt income fund
A mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes.
Tax exempt money market fund
A money market fund that invests in short-term tax-exempt municipal securities.
Tax exempt sector
The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes.
Tax exempt security
An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district.
Tax free acquisition
A merger or consolidation in which the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and each seller who receives only stock does not have to pay any tax on the gain realized until the shares are sold.
Tax gain-loss harvesting
Tax haven
A financial center offering low taxes to non-residents, in which multinational companies are encouraged to set up offices.
Tax haven affiliate
A wholly owned entity in a low-tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986.
Tax holiday
A reduced tax rate that a government provides as an inducement to foreign direct investment.
Tax home
An individual's primary place of work or residence. This is used when determining tax for travel or transportation expenses.
Tax liability
The amount in taxes a taxpayer to the government.
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This dictionary contains 24549 terms.
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