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 ?
The acquisition of UNUM's tax-sheltered annuities underscores Lincoln Life's commitment to remain as one of the nation's leaders in the annuity business," said Jon Boscia, president of Lincoln Life.
Approximately 215 former UNUM employees -- all of whom supported the group tax-sheltered annuity business in UNUM's Portland, Maine, headquarters or in field locations -- have been hired by Lincoln Life or Lincoln Life & Annuity to administer the block of business from the Portland offices.
Orr III, chairman and chief executive officer of UNUM Corporation, said, "As an asset accumulation vehicle, tax-sheltered annuities are not a strategic fit with UNUM's core disability and special risk businesses.
Included in the agreement is the sale of the tax-sheltered annuity business written by UNUM America and First UNUM in New York state.
Other exempt organizations that permit employees to purchase tax-sheltered annuities without any direct employer involvement mistakenly believe they do not maintain employer-sponsored Sec.
Under the Unemployment Compensation Amendments Act of 1992, the rollover rules for distributions from qualified retirement plans and tax-sheltered annuities have been expanded and simplified.