Tax swap

Tax swap
Swapping two similar bonds to receive a tax benefit.
Similar financial terms
Withholding tax
The tax payable on payments such as dividends, interest, and debt repayments which are sent to foreign entities.

Tax swap
Definition: [crh] Swapping two similar bonds to receive a tax benefit.

Tax Swap - The simultaneous purchase and sale of non-identical bonds to take capital losses on bonds sold, normally used by an investor seeking to offset capital gains.
Tenancy - The holding of real estate under any kind of right of title.

Tax Swap - Act of selling a security that has declined in price and the simultaneous purchase of a similar but not identical security, in order to realize a loss for tax purposes while preserving the same investment strategy.

Tax Swap
A method of crystallizing capital losses by selling losing positions and purchasing companies within similar industries that have similar fundamentals.
An Introduction To Swaps ...

tax swap An attempt to crystallize capital losses through the sale of a security that... tax tables People with incomes below $100,000 use these tables in order to determine the quantitative values of their tax burdens.

For example, an investor with a capital gain takes a position creating an artificial offsetting loss in the current tax year and postponing a gain from the position until the next tax year.
Tax swap ...

Bond Swap: Selling municipal bonds (usually at a loss) and using the proceeds to buy other municipal bonds, to establish a loss for tax purposes, to diversify a portfolio, to increase cash flow, or increase yield. Also known as tax swaps.

See also: Deferral, Tax free, Internal revenue code, Deficiency, Tax deferral