Tax Credit

A tax credit reduces the amount of taxes owed to the government. Tax credits shouldn’t be confused with tax deductions and exemptions, which reduce taxable income. Tax credits provide a dollar for dollar reduction in taxes owed, making them more favorable than deductions and exemptions.

Tax credits come in three types — nonrefundable, refundable, and partially refundable. Each type of credit will reduce your taxes. A nonrefundable credit can’t create a refund, while a refundable credit can create a refund. A partially refundable credit allows, in some cases, taking part of the credit as a refund.

Learn Ways to Help Reduce or Defer Real Estate Taxes

Tax-Deferred Strategies Using IPWM™
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Tax-Deferred Strategies Using IPWM™

Learn Ways to Help Reduce or Defer Real Estate Taxes

Learn how the principles of IPWM™ can help you create a tax-deferred investment strategy.

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