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tax shelter |
Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia, Hutchinson | 0.02 sec. |
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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 generates paper losses or tax credits that may be used to offset other income and thus reduce taxes. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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