Tax Advantage (Noun)
Meaning
An advantage bestowed by legislation that reduces a tax on some preferred activity.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The retirement account offered a significant tax advantage that encouraged people to save for their golden years.
- One of the tax advantages of owning a home is the ability to deduct mortgage interest from your taxable income.
- Many countries offer tax advantages to companies that invest in renewable energy projects.
- The charitable donation was made allowable as a tax advantage for philanthropic efforts under the updated tax law.
- By using a Roth IRA, she took advantage of a tax-free growth benefit as one of the key tax advantages of the investment option.