tax shelter

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Tax shelter

Legal methods taxpayers can use to reduce tax liabilities. An example is the use of depreciation of assets.

Tax Shelter

An investment vehicle that reduces one's tax liability. For example, a 401(k) defers taxation until withdrawal from the account and may therefore be considered a tax shelter. Tax shelters are legal unless their sole purpose is to avoid taxes. See also: Tax evasion.

tax shelter

An investment that produces relatively large current deductions that can be used to offset other taxable income. Popular tax shelters include real estate projects and gas and oil drilling ventures. Also called shelter. See also abusive tax shelter.

tax shelter

An investment that generates paper losses or tax credits that may be used to offset other income and thus reduce taxes.

References in periodicals archive ?
While it agreed with the Tax Court that a House report could be a good record of congressional intent, it also found that in this case the report did not support Valero's position because nothing in it indicated that tax shelters were limited to actively marketed tax shelters or prepackaged products.
SB 747 (Machado) targeted those who plan, promote or sell abusive tax shelters and lowers the standard of proof for the FTB in proving cases against practitioners.
Tax shelters that the IRS considers abusive aren't limited to those used by wealthy individuals.
Tax professionals and tax shelter promoters, also known as material advisors, who have provided aid or assistance with respect to promoting or carrying out any reportable transaction or tax shelter must register tax and furnish lists of investors in those tax shelters with the Minnesota Department of Revenue by Oct.
IRC section 6662 defines tax shelter as any partnership, entity, plan or arrangement that has as its significant purpose the avoidance or evasion of federal income tax.
But others can reasonably be viewed as falling in a gray area, and the courts have indeed sided with taxpayers in several tax shelter cases.
There are a number of sophisticated tax shelters that are usually aggressively marketed by their promoters.
According to the United States Department of Treasury, the proliferation of illicit corporate tax shelters may be the most serious compliance issue threatening the U.
If his analysis proves anything, however, it's mostly that tax shelters and loopholes are as culpable as high tax rates.
Abusive tax shelters divert funding that should be going to our schools, parks, and roads.
The IRS has been challenging tax shelters for more than 35 years.