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| Definitions by InvestorWords.com |
| What is...? |
| tax deferral To delay tax liability until some future date. For individuals this may be done by making investments such as IRAs, 401(k)s, SEP IRAs, or Keogh plans, where taxes are paid when funds are withdrawn. For a business entity, this may be achieved by taking accelerated depreciation of assets results to delay tax liabilities. |
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