Tax-Advantaged

  

Categories: Tax

Theoretically, in a free-market society, the government is supposed to...stay out of the market. Aside from making sure that poison doesn’t end up in our water supply, or that rotten meat doesn’t end up on our plates, the government is supposed to act as a neutral observer of commerce.

However, that doesn’t always happen. Certain businesses end up getting a boost from the tax code. Hence the concept of tax advantage.

The best example might be the municipal bond market, which is generally exempt from federal taxation. This situation gives muni bonds a leg up versus competitors, like corporate debt securities. Another high-profile example includes the mortgage industry. A mortgage interest exception on federal income taxes gives homeownership a subtle advantage over renting.

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Finance: What is the IRS?19 Views

00:00

Finance allah shmoop What is the i r s Well

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i rest might be the three most hated letters in

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the alphabet Well after d m v a pms and

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well maybe std The i r s is the internal

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revenue service Their internal i e inside the government they're

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in charge of collecting revenue A k a They take

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money from your pocket in the form of taxes and

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they deliver it to uncle sam and they you know

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service you and it doesn't feel good So yeah these

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are the guys from the us treasury department who checked

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to make sure you filled out your income tax forms

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correctly and submitted the proper amount And if you screwed

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up in any way they will let you know about

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it and a half in the form of angry letters

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Phone calls knocks on your front door rocks through your

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back window Whatever it takes to get you to pay

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your fair share of taxes Like why should you get

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away with not paying when the jones has paid all

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they owed Or the irs can do even worse and

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audit you with an audit he irs will request extensive

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and very specific information and records from you Paycheck deductions

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all kinds of things You claim that you did that

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were deductible that may or may not have been forcing

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you to spend hours upon hours at your public storage

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unit digging through boxes you hoped and prayed you'd never

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see again Well after the third solid week of having

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your financial history poked and prodded like you've had to

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turn your head and cough you uh might actually be

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ready and willing to trade in those three letters of 00:01:35.13 --> [endTime] irs for rough one of those stds instead

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