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Tax Shield Definition Formula Example Calculation
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=6dJg4VU3LPc
In this video on Tax Shield, we are going to learn what is tax shield? its formula, examples and calculation with practical examples. • ๐๐ก๐๐ญ ๐ข๐ฌ ๐๐๐ฑ ๐๐ก๐ข๐๐ฅ๐? • ------------------------------------- • Tax Shield is the saving in taxable income for Individuals/Corporations by cutting the expansible allowance such as Depreciation, Mortgage Interests, Hospital Expenditure, donations for charity, amortization and depreciation etc • It has become an important part of decision making process in Corporate Finance and Project Finance. • In simple words we can say, a tax shield is the PV (Present Value) of future tax saving attributes to tax deductibility of a particular expense in P and L Account i.e profit loss account. • ๐๐๐ฑ ๐๐ก๐ข๐๐ฅ๐ ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐ • ------------------------------------- • Below is the formula to calculate tax shield. • Tax Shield = Deduction x Tax Rate • • ๐๐ฆ๐ฉ๐จ๐ซ๐ญ๐๐ง๐๐ ๐จ๐ ๐๐๐ฑ ๐๐ก๐ข๐๐ฅ๐ • ---------------------------------------------- • Tax shield lower tax bills which is one of the major reason why taxpayers spend a considerable period of time determining which deduction and credits they qualify every year. • ๐๐๐ง๐๐๐ข๐ญ๐ฌ ๐จ๐ ๐๐๐ฑ ๐๐ก๐ข๐๐ฅ๐ • -------------------------------------- • 1. Tax Shield on Depreciation • 2. Tax Shield on Interest • 3. Tax Shield for Individuals • To know more about the Tax Shield, you can go to this ๐ฅ๐ข๐ง๐ค ๐ก๐๐ซ๐:- https://www.wallstreetmojo.com/tax-sh... • Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - / @wallstreetmojo
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