Business, Legal & Accounting Glossary
Noun: the action of being abated or abating: subsiding or ending.
Law: the removal or reduction of a nuisance.
A reduction. After a death, abatement occurs if the deceased person didn’t leave enough property to fulfill all the bequests made in the will and meet other expenses. Gifts left in the will are cut back in order to pay taxes, satisfy debts or take care of other gifts that are given priority under law or by the will itself.
(often in legal use) the ending, reduction, or lessening of something.
Abatement refers to a reprieve from or reduction in debt, tax or other payment obligation faced by an individual or company.
The most common form of abatement is tax abatement.
Tax abatement is also an incentive utilised by cities to encourage the redevelopment of distressed areas by providing real property tax abatement and eminent domain. Another type of abatement is related to the payment of rent. If a building is destroyed by fire, water damage or another accident, a renter is usually granted abatement from making rental payments.
A lesser-known form of abatement is penalty abatement, commonly associated with the Internal Revenue Service (IRS). Penalty abatement can help an individual or business reduce or eliminate an IRS penalty and/or interest. To request penalty abatement from the IRS, certain requirements must be met.
For example, penalty abatement might be granted if a business or individual is able to prove reasonable cause as to why they were unable to meet their tax obligations.
To reduce the intensity, amount or degree of a given activity.
Abatement is also used to describe the reduction of the emission of pollutants in environmental economics.
Technical abatement is a term used when referring to measures which involve production activities of businesses, for example, an introduction of a new, or an amendment to an existing process or technology.
Behavioural abatement is the changing of behaviours of consumers, or the changing of lifestyles in the customers.
The question of the amount of individual incomes only comes before the authorities when claims for exemption and abatement are made.
The investor was able to secure a tax abatement for the grade 2 listed building, in exchange for promising to create affordable housing for disadvantaged members of the local community.
The abatement of a nuisance is the suppression thereof.
A reduction in or reprieve from a tax, debt, or any other payment obligation. An abatement is sometimes included in a contract, for example, abatement of rent in the event that a building is destroyed by fire, flood, or other accident.
reduction
decrease
mitigation
discount
diminution
Taxation
Will
Abatement is a measure that alleviates or reduces a burden. It is a procedure that decreases the amount owed or imposed on a certain transaction.
The term abatement refers to a situation where an economic burden is reduced. This burden might take the form of debt, an import tariff, a tax, a fine, a penalty or a reduction of the percentage being charged, like an interest rate or a tax bracket reduction. Tax abatements are the most frequent scenarios where the term is employed and they are a reduction or exemption granted to an individual or a corporation by the government to encourage the expansion of certain activities or projects.
On the other hand, natural disasters and town-building are also activities that can create the necessity for a tax abatement to be issued. They normally have a predefined life span where they can be utilized and then the situation steps back to the regular taxing rules. Finally, debts can also be abated. This is a case that might take place in government-issued debt like student loans or industry-shaping loans, which are tools employed to promote activities within certain business fields like agriculture or farming. By granting abatements, the remaining debt balance can be partially or totally offset.
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This glossary post was last updated: 28th December, 2021 | 854 Views.
