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Tax Benefit Rule

Legal definition for Indian law research

Definition

tax benefit rule


: a tax rule requiring that if an amount (as of a loss) used as a deduction in a prior taxable year is recovered in a later year it must be included in the gross income for the later year to the extent of the original deduction NOTE: If the amount of the loss was not taken as a deduction in the year the loss occurred, the recovered amount is not counted as income.




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