Tax Indexing Definition

Tax Indexing Definition

What Is Tax Indexing? Tax indexing is the adjustment of the various rates of taxation in response to inflation and to avoid bracket creep. Bracket creep occurs when inflation drives income into higher tax brackets, resulting in higher income taxes but no real increase in purchasing power. Tax indexing attempts to eliminate the potential for

Taxable Fit Definition

Taxable Fit Definition

Taxable Event: An Overview A taxable event is any action or transaction that may result in taxes owed to the government. Common examples of federal taxable events include receiving a payment of interest and dividends, selling stock shares for a profit, and exercising stock options. Receipt of a paycheck is a taxable event. Understanding the

Taxable Most well liked Securities Definition

Taxable Most well liked Securities Definition

What are Taxable Preferred Securities? Taxable preferred securities refers to preferred stock whose dividend payments are not exempt from taxation. Key Takeaways Taxable preferred securities refers to preferred stock whose dividend payments are not exempt from taxation.Taxable preferred securities are usually junior level liabilities, and the coupons tied to them can either be fixed or

Tax Information Definition

Tax Information Definition

What Is a Tax Advisor? A tax advisor is a financial expert with advanced training and knowledge of tax accounting and tax law. The services of a tax advisor are usually retained in order to minimize taxes payable while remaining compliant with the law in complicated financial situations. Tax advisors can include Certified Public Accounts

Tax Arbitrage Definition

Tax Arbitrage Definition

What Is Tax Arbitrage? Tax arbitrage is the practice of profiting from differences that arise from the ways various types of income, capital gains, and transactions are taxed. The complexity of many countries tax codes allows for individuals to seek out legal loopholes or restructure their transactions in such a way that they are able