Tax Deferral
/ˈtæks dɪˈfɜːrəl/
Definitions
- (n.) The legal allowance to postpone the payment of taxes to a future date, often to manage cash flow or investment growth.
The investor utilized a tax deferral strategy to delay capital gains taxes until retirement.
Forms
- tax deferral
Related terms
See also
Commentary
Tax deferral typically involves legal mechanisms such as retirement accounts or installment sales that postpone tax obligations, distinct from tax avoidance or evasion.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.