tax benefit rule

noun

Legal Definition of tax benefit rule

: a tax rule requiring that if an amount (as of a loss) used as a deduction in a prior taxable year is recovered in a later year it must be included in the gross income for the later year to the extent of the original deduction

Note: If the amount of the loss was not taken as a deduction in the year the loss occurred, the recovered amount is not counted as income.

Comments on tax benefit rule

What made you want to look up tax benefit rule? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

tired or exhausted

Get Word of the Day daily email!

Test Your Vocabulary

Where in the World? A Quiz

  • peter bruegel tower of babel painting
  • What language does pajama come from?
Spell It

Can you spell these 10 commonly misspelled words?

TAKE THE QUIZ
Bee Cubed

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!