Dictionary of Finance and Investment Terms: taxable event
taxable event
occurrence with tax consequences. For example, if a stock or mutual fund is sold at a profit, capital gains taxesmay be due. Withdrawal of assets from a tax-deferred retirement account like an IRA, keogh, or salary reduction plan is a taxable event because some or all of the proceeds may be considered taxable income in the year withdrawn. Proper tax planningcan help taxpayers time taxable events to maximum advantage.
