Flexibility Rewards Refer to the Money Made from Owning a Business

question 50

True/False

Flexibility rewards refer to the money made from owning a business.

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Definitions:

Tax-Exempt Securities

Investments whose interest income is not subject to federal income tax, and in some cases, state and local taxes.

Residence Acquisition Debt

Mortgage debt incurred in acquiring, constructing, or substantially improving a principal residence, which is secured by the residence.

Fully Deductible

Expenses that can be subtracted in full from taxable income, reducing the total amount on which tax is calculated.

Adjusted Gross Income

involves a rephrased definition: it's the measure of income calculated from your gross income and allows for certain deductions, but before itemized or standard deductions.