Tax Free

Tax Free can is a term that is used to refer certain types of goods, financial instruments and products that are not taxed. The example of the tax free instruments can be presented as municipal bonds. There are also kinds of earnings that are not taxed and called as tax free earnings. The tax free status of these goods or instruments is given in order to attract the investor so they can invest or spend more in that certain area. The tax free status of the products or goods can be used as an economic stimulus in order to boost the economy. Another example of the tax free instrument is the bonds issued by the Government where government announces these bonds as tax free so that investors can be attracted for the investment and to make sure that investors can earn expenditure through these investments.

In order to attract buyers the Government also offers certain incentives such as tax free weekends in the malls and the stores where all the items are sold absolutely tax free mode and the entire purchased are not taxed. The major purpose of this favor is to reduce the overall costs of the items for the consumer. For example the tax free weekend is usually celebrated before fall when schools open in order to sell school supplies at a low price.

Other Related Accounting Articles:

• Balloon Interest
• Qualifying Investment
• Accounting Earnings
• Debentures
• Market Distortion
• Market Economy
• Sales Tax Accounting
• Underlying Debt
• Operating Earnings Explained
• Inventory Valuation Methods