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Abatement

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Definition of 'Abatement'

A reduction in the level of taxation faced by an individual or company. Examples of an abatement include a tax decrease, a reduction in penalties or a rebate. If an individual or business overpays its taxes or receives a tax bill that is too high, it can request an abatement from the tax authorities.
Investopedia Says

Investopedia explains 'Abatement'

A common type of tax abatement is property tax abatement. Individuals who believe that the assessed value of their property is too high, can appeal to their local tax assessor for a tax abatement. Some localities offer property tax abatement to owners who restore, or improve, historic properties located in designated neighborhoods. Some types of properties, such as those containing non-profit businesses, will be granted tax abatements based on the owner's tax-exempt status.

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    Abatement Cost

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    Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax.Also referred to as "allowable deduction".
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  • Double Taxing

    A tax law that causes the same earnings to be subjected to taxation twice. A company's income is taxed initially and then the shareholders and investors are taxed on the distributions ...
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    • Tax Credit

      An amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government. The value of a tax credit depends on what the credit is being provided for, ...
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    • Form 843: Claim For Refund And Request For Abatement

      A tax form distributed by the Internal Revenue Service (IRS) to claim a refund for certain taxes, interest and penalties. Individual taxpayers can use Form 843 to request, for example, a ...
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