Exclusion ratio

The amount of an Annuity payment that is not subject to income Tax when received, since it is considered to be the Return of the original Principal.

Related Terms: 6 Annuity, Inc., Principal, Return, Tax, UIT

Other Related Pages: Category: Taxes Starting With: E

Additional Related Terms: Annuity unit, Average accounting return, Accrual of discount, After-tax basis, Amortization of premium, At par, All or any part, At best, At call, Accumulated earnings tax