The practice of reporting income over a period of several years rather than in a single year to avoid being taxed in a higher income bracket. The IRS tax code permits this type of income spreading in certain situations. For example, if a business owner sells a business for $20,000 but receives payments from the buyer in installments of $4,000 per year over a period of 5 years, the income from the sale might be spread over that time period.
Related information about income spreading:
- Income Spreading Definition | Investopedia
A tax reduction strategy that is typically used by people with highly volatile incomes to reduce the overall marginal tax rate paid on a large sum of income.
- What is income spreading? definition and meaning
Definition of income spreading: The practice of reporting income over a period of ... The IRS tax code permits this type of income spreading in certain situations.
- Income Spreading: Definition from Answers.com
Income Spreading A tax reduction strategy that is typically used by people with highly volatile incomes to reduce the overall marginal tax rate.
- Income Tax Planning | Family Limited Partnerships Rubinstein ...
The principle of income spreading essentially allows for income to be spread among ... ["Income spreading" is available to partnerships actually engaged in ...
- Saving on taxes can be simple: Spreading, splitting income is a ...
tax-sheltered contributions have the opportunity to grow much faster inside the plan. INCOME SPREADING Since we face graduated tax brackets federally and ...
- ATS Accounting | Income spreading
For people who have unpredictable incomes, income spreading is a tax reduction plan that will minimize your tax exposure on any large influx of income.
- Income Spreading Mechanisms in Common Property Resource - JStor
This article examines the case of an income spreading mechanism which has been practised in the coastal encircling net fishery of Kerala for about half a ...
- BIM74220 - HM Revenue & Customs
BIM74220 - Revenue recognition and service contracts: UITF 40: adjustment income: spreading requirements. In order for there to be adjustment income which ...