tax benefit doctrine

tax benefit doctrine definition - legal

n

The principle that if a loss was suffered in a previous year and taken as an income reduction for tax purposes, and an insurance reimbursement for that loss is received in the current year, that reimbursement must be counted as part of gross income for the current year, at least in the amount of the reduction previously taken.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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