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Showing posts with label TAX. Show all posts
Showing posts with label TAX. Show all posts

Tuesday, April 13, 2010

Tax deferred

Tax Deferred

What Does it Mean?
Investment earnings such as interest, dividends or capital gains that accumulate tax free until the investor withdraws and takes possession of them. The most common types of tax-deferred investments include those in individual retirement accounts (IRAs) and deferred annuities.

Monday, April 12, 2010

tax sheild

Tax Shield

What Does it Mean?
A reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as mortgage interest, medical expenses, charitable donations, amortization and depreciation. These deductions reduce taxpayers' taxable income for a given year or defer income taxes into future years.

Tax shields vary from country to country, and their benefits will depend on the taxpayer's overall tax rate and cash flows for the given tax year.