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tax advantage

tax advantage

3 3.5
A rule that lets you pay less tax on certain income or investments
  • noun
  • /tæks əˈdvæntɪdʒ/
  • Specialized
translation icon : ventaja fiscal
  • The Master Limited Partnerships Act would give clean energy development some of the same tax advantages as oil and gas by allowing clean energy businesses to be taxed as a partnership, but with ownership interests traded on a market.
  • a big tax advantage
  • tax advantages available
  • gain tax advantages

In other words, you get a tax advantage for long term capital gains tax rates if you hold your stock for longer than one year.

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Examples

  • In other words, you get a tax advantage for long term capital gains tax rates if you hold your stock for longer than one year.

  • Investing in municipal bonds can offer a significant tax advantage as the interest is often exempt from federal taxes.

  • And real estate is very unique in the kind of tax advantages that it offers people.

  • "I can understand why many in my industry want to preserve this special tax advantage.

    Blog text (24)
  • Corporations that base their manufacturing in the US should get some type of tax advantage for doing so.

    Blog text (12)
  • Every major trading country in the world, except for the United States, provides a tax advantage for domestic manufacturers.

    Blog text (28)
  • You are eligible to receive tax advantages when you purchase a long-term care insurance policy.

    Blog text (32)
  • Retirees usually own their homes outright, do not have work-related transportation costs, and enjoy discounts and tax advantages.

    Academic text (2002)
  • And of course one of the biggest tax advantages that we have is what's called the intangible drilling cost deductions or IDC's.

  • The ABE Charitable Gift Fund offers the potential of unsurpassed tax advantages, customized for lawyers with professional investment account management by Northern Trust Corp.

    Academic text (2001)

Synonyms

tax benefit
vstax advantage
  • Specialized
9 3.7

A rule that lets people or companies pay less tax to encourage certain activities

reduces how much is owed on certain activities or investments

Antonyms

tax liability
  • Specialized
10 5.1

Total amount of tax a person or business must pay to the government

How Beneficial

tax cut
599 3.2
tax benefit
  • Specialized
9 3.7
tax break
  • Specialized
98 3.0
tax advantage
  • Specialized
3 3.5
incentive
439 3.9

Surface Forms

tax advantage singular

Morphology

tax + advantage

The meaning is directly compositional: 'tax' (a government charge) combined with 'advantage' (a favorable circumstance) yields a benefit related to taxes. This head-modifier compound follows a common and cross-linguistically familiar pattern, so a B1 learner who knows both words can reasonably infer the intended meaning.

Etymology

Tax advantage comes from a simple picture: tax is the money you pay to the government and an advantage is something that helps or lowers a cost. So a tax advantage is 'a benefit that reduces the tax you owe'.