Investor Glossary-tax shieldInvestor Glossary-tax shieldInvestor Glossary-tax shieldInvestor Glossary-tax shieldInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Shield

The HTML to link to this page
 

A tax shield is a legal means of reducing income in order to protect it from taxation. In that sense a tax shield is the same as a tax deduction, except that a tax shield can also encompass deferments of income to future years. Any individual or business is eligible to use a tax shield. Donations to charity can be used as a tax shield, as can medical expenses, mortgage interest, interest on many business loans, business losses, and amortization and depreciation. Interest from a car loan or credit cards might be usable as a tax shield if the principle expense was incurred doing business. Child care and child education expenses are tax deductible in some states and therefore usable as a tax shield. Some states also offer a tax shield to renters in the form of renter's credits, but these are often much smaller than the deduction for mortgage expense. Interest from a personal loan may not be used as a tax shield.



Rate this tax shield definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, balance sheet, current ratio, implied volatility, ex-dividend, APR, open position, reverse mortgage, deferred revenue, real GDP, wholly-owned subsidiary, inflation, Zero Cost Collar, Key Rate Duration, average price per share, VIX, limit order, labor relations, command economy, quality assurance, LIBOR, debt service coverage, FTSE, phantom income, 1031 exchange, ex-dividend date, per diem, stock split, stock market close, minority interest, cancelled check, covered put, dividends payable, 1035 exchange, class C shares, diluted share, required rate of return, margin rate, retained earnings, EBITDA, FICO score, 144a, deferred tax, risk management, option premium, annual return, 401a, irrevocable trust, liquidity ratio


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use