tax benefit rule

noun

: 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.

Dictionary Entries Near tax benefit rule

Cite this Entry

“Tax benefit rule.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/tax%20benefit%20rule. Accessed 25 Mar. 2023.

Love words? Need even more definitions?

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


Challenging Standardized Test Words, Vol. 2

  • a pencil broken in half on top of a test answer sheet
  • The business’s new computer system proved not to be a panacea.
Name That Thing

You know what it looks like… but what is it called?

TAKE THE QUIZ
Solve today's spelling word game by finding as many words as you can with using just 7 letters. Longer words score more points.

Can you make 12 words with 7 letters?

PLAY