qualifying utility

Definition

Former tax-deferring procedure that allowed shareholders in a utility company to defer paying income taxes on some income by investing money into the company's capital stock. Individuals were only permitted to invest a maximum of $1,500 in the stock. Individuals taking part of this action were not required to pay taxes on the income until the stock was sold and income was received. This procedure was only allowed between 1981 and 1985.
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qualifying transaction qualifying widow/widower with dependent child