borrowback
borrowback noun: an arrangement in which an asset is sold or given to another, and then borrowed back from the trust or person to whom it was sold or given. Typically, this is done either to take advantage of a lower tax rate on the part of the one to whom the asset is given, or to allow a trust to earn a higher rate of interest than that available from a bank.
Noun
borrowback (countable and uncountable, plural borrowbacks)
- An arrangement in which an asset is sold or given to another, and then borrowed back from the trust or person to whom it was sold or given. Typically, this is done either to take advantage of a lower tax rate on the part of the one to whom the asset is given, or to allow a trust to earn a higher rate of interest than that available from a bank.
- A borrowback can be used to increase investment yield.1982, Annual Notre Dame Estate Planning Institute, volume 7, page 516
- There are other income shifting techniques besides trusts, such as gifts with leaseback or borrowback arrangements, family businesses, and loans. But these are tax avoidance measures which rightfully belong in another work.1987, Gerald Krefetz, “Taxation and the Saver”, in All About Saving, New York, N. Y.: John Wiley & Sons, →ISBN, page 162
Forms of borrowback
| plural | borrowbacks |
|---|---|
| alternative form | borrow-back |
Origin of borrowback
From borrow + back.
Questions about borrowback
- What does borrowback mean?
- Borrowback means an arrangement in which an asset is sold or given to another, and then borrowed back from the trust or person to whom it was sold or given. Typically, this is done either to take advantage of a lower tax rate on the part of the one to whom the asset is given, or to allow a trust to earn a higher rate of interest than that available from a bank.
- What part of speech is borrowback?
- Borrowback is a noun.
- What is the plural of borrowback?
- The plural of borrowback is borrowbacks.
Words near borrowback in the dictionary
Source and license
Adapted from Wiktionary: borrowback (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
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Cite this entry: “borrowback.” Word.ws, https://word.ws/borrowback. Based on Wiktionary, CC BY-SA 4.0.
