Qualifying Investment

Qualifying investment can be defined as an investment that is purchased with a pretax income. That means that qualifying investment such as building, land; bonds or securities are purchased by the income from which the tax has not been deducted yet. The money that is invested in an qualifying investment plan is a tax free money as the tax is only deducted from the invested money when it is withdrawn from the investment, annuity or the qualifying investment plan. The investment that is made as a qualifying investment can also be called as the tax deferred investments as the tax is deducted only when the money is withdrawn from the investment.

There are a number of investments and investments plans that come under the label of the qualifying investment as they are given the status of the tax deferred investment. The example of such investment can be annuities, bonds, securities, investments plans, IRS investment plans and certain kinds of trusts that introduce tax free investments.

Other Related Accounting Articles:

Recommended Books !


Download E accounting book in MS-word format for just 20 $ - Click here to Download

Leave a Reply

Your email address will not be published. Required fields are marked *