A Cash Or Deferred Arrangement (CODA) is a type of retirement plan arrangement that allows employees to defer a portion of their income to a retirement plan, such as a 401(k), on a pre-tax basis.
A deferred account is a financial account that postpones tax obligations until a later date, allowing the account holder to potentially reduce their current tax burden.
Deferred gain refers to any gain from a transaction that is not subject to tax in the year it is realized but is instead postponed until a future period.
Legging-out refers to the process of disposing of one or more unmatured elements of a qualified hedging transaction. Any gain or loss from legging-out is deferred until the qualifying debt instrument matures or is disposed of in the future.
Loss carryover refers to a tax mechanism that allows individuals or businesses to apply a net operating loss (NOL) to future tax years, offsetting taxable income.
A nonrecognition transaction refers to any disposition of property in which the gain or loss is not recognized in whole or part under tax laws, like a like-kind exchange.
Rollover relief allows businesses to defer capital gains tax or corporation tax when proceeds from a disposable asset are reinvested, thus potentially increasing any gains from future asset disposals.
Selling short against the box is a strategy wherein an investor sells a stock they already own but have kept in a brokerage firm's safekeeping, known as the 'box,' to defer capital gains to the following tax year.
A tax advantage is a benefit that individuals and businesses experience when they are eligible for a reduction in a charge to taxation, which can arise through exemptions, deductions, credits, or deferrals.
A Tax-Free Exchange, Delayed is a transaction where property is traded with the promise to provide a like-kind replacement in the near future, allowing deferral of tax on the gain under stringent conditions.
