Sentences with phrase «defer taxation»

Also, pass - through tax treatment (which had already applied to sole proprietorships and partnerships) meant that owners had to pay tax on the income as it was earned, unlike the shareholders of C corporations who, in the words of Tax Foundation economist Kyle Pomerleau, «can defer the taxation on their share of corporate income as long as the corporation retains its earnings or if the shareholder does not realize a capital gain on his stock.»

There is no need to defer taxation.

If you have a significant amount of income and assets, life insurance estate annuities help defer this taxation upon withdrawal and payment.

In order to defer taxation, the paid - up additions dividend option should be chosen.

A properly structured plan allows employees to defer taxation until the benefits are paid.

You may be able to defer taxation of the policy, it's cash value equivalency or death benefit payments.

There are some exceptions, including significantly the ability to defer taxation if the proceeds are paid to the annuitant's spouse (I have written about the taxation of registered plans in greater depth in a previous post).

And that is because of loopholes in the tax code for social engineering purposes, but even more for the ability to defer taxation of what should be income.

Keep in mind that CAB does not necessarily allow you to defer taxation.

401 (k) plans typically enable you to make contributions out of your paycheck on a pre-tax basis, so you can defer taxation on your income while growing your retirement savings on a tax - deferred basis (Calculator: College Savings).

A fair amoiunt of the increase in offshore USD denominated assets, might very well be MNC's profits not re-shored, and off course HNW seeking yield, deferring taxation.

In the past five years, following a ruling by the Internal Revenue Service, some states have allowed local school districts to convert to a system in which employees contribute pretax dollars, thus deferring the taxation...

Additionally, certain types of retirement saving accounts and defined contribution saving plans lower current tax liability by deferring taxation of the amounts contributed until the funds are withdrawn in retirement.

Tax - sheltering investment products are those that offer deferred taxation on your investment.

This process defers taxation of the accumulated value and treats the annuity as if it were initially purchased by the spouse.

Not exact matches

In other words, the receipt of a forked coin should be treated as a taxable event, but taxation should be deferred until the IRS has a clear policy in place with regard to the taxability of such assets.

Certain changes to U.S. tax laws, including limitations on the ability to defer U.S. taxation on earnings outside of the United States until those earnings are repatriated to the United States, could affect the tax treatment of our foreign earnings, as well as cash and cash - equivalent balances we maintain outside the United States.

So, a divestment of his specific blend of ownership assets and deferred liabilities would trigger not only a huge tax bill, but, also result in the taxation at ordinary income tax rates.

You can rebalance your portfolio without immediate taxation concerns because taxes on your earnings are deferred until you start withdrawing from the annuity.

And if he holds the stock, taxation of that initial discount can be deferred until he sells the stock, perhaps indefinitely?

My view is that people should be taxed according to their increase in net worth, and at a flat rate, but with no ability to defer income from taxation.

If an employee is entitled at the end of the year to receive an amount in a future year and one of the main purposes for this arrangement is to defer or postpone taxation, the amount will be taxed as a benefit to the employee in the current year.

REALITY: The long - term tax treatment offered by annuities is much more favorable than many believe, and tax - deferred annuities have the added potential to accumulate more than vehicles that may be subject to taxation each year.

Even though stocks tend to appreciate more quickly than bonds, taxation on equities can often be deferred for a very long time.

In contrast, even though equities have substantially higher yields, a substantial proportion of these returns can be deferred, which avoids near term taxation.

When investors needlessly reallocate assets, they deprive themselves of the primary means to mitigate the return impact of taxation: deferring taxes on capital gains that, left unrealized, might have continued to grow on a pre-tax basis.

I had suggested that this was where it would make sense to contribute immediately but defer the deduction, so as to avoid ongoing taxation of the funds if you simply waited to contribute.

«While legislators had valid reasons for promulgating the PFIC regulations, namely to discourage US citizens from deferring or avoiding US taxation by investing in non-US corporations, the PFIC rules are over-inclusive In practice, the PFIC regime captures assets that do not facilitate the legislative intent of preventing tax evasion and tax deferral.

In order to stop people from using deferred annuities as short term investments and thus remedying their perception of an «unfair advantage» by the annuity companies, Congress passed the Tax Equity and Fiscal Responsibility Act of 1982, which drastically altered the taxation of deferred annuity withdrawals and distributions.

There are Tax - Advantaged Investments that are either exempt from taxation, tax - deferred or offers other types of tax benefits.

, it does front taxation to a far higher degree from tax deferred accounts, which will pinch retirees.

(This is to avoid double taxation, one by the ADR's country of origin and one by United States) For tax - deferred...

That double taxation is why it is usually best to use a tax - deferred retirement fund.

To illustrate the taxation of a Non-Qualified Annuity withdrawals, let's assume that Erin S. is the person who invested in the tax - deferred annuity mentioned in the table above.

And, as with other types of life insurance coverage, the growth of the cash value is tax deferred, and the death benefit that is received by the beneficiary will be free of income taxation.

The cash value worth that your indexed universal life insurance policy accrues is all taxation deferred.

Assumptions: We have assumed an annual % return compounding, with deferred (or no) taxation during accumulation.

Which means you will pay taxes on the growth of your cash value later — taxation has been deferred.

Plus, Cash deposition is tax - deferred, which indicates you won't have to spend taxation for the money your plan builds up.

If your company is a C corporation, you can minimize the effects of double taxation by taking some of the proceeds of the sale of the business as a personal benefit in the form of a bonus, a non-compete agreement, or a deferred compensation package.