tax shelter


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Related to tax shelter: tax shelter investments

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 basic concept is presented in the example below, which illustrates the potential results of tax shelters that were available to investors before the enactment of legislation designed to curb the use of these shelters.
6662(d)(2)(c)(ii)) that the term tax shelter meant "any plan or arrangement whose significant purpose is to avoid or evade federal taxes" and that therefore a tax shelter could include an individualized or one-size-fits-all plan.
Any person who organizes and sells potentially abusive tax shelters is required to maintain a list identifying each person who purchases an interest in any such tax shelter, along with any additional information required by the IRS.
1) The dictionary definition of tax shelters would include interest deductions on home mortgages.
KPMG has avoided the fate of Arthur Andersen by admitting to criminal tax fraud over the long-simmering issue of "abusive" tax shelters and settling with the U.
The rules include specific reporting requirements for disclosure of tax shelter deductions on your personal tax return that make it easier for Revenue Canada to identify and audit tax shelter deductions.
The new regulations also apply to providers of tax shelter plans.
The California Tax Shelter Resolution Initiative announced in FTB Notice 2006-1 allows taxpayers who participated in the IRS Initiative to avoid most California tax shelter penalties by participating.
The due date for Form 8886-T depends on whether the entity is a party to a prohibited tax shelter transaction to reduce its own federal tax liability or whether it is trying to "facilitate" the transaction by reason of its tax-exempt, tax-indifferent, or tax-favored status.
On appeal, the clients argued that disclosing their names would violate the confidential communications they expected in the tax shelter agreement with BDO.
The task force concluded there was no need for a new standard to address tax shelter issues because SSTS Statement no.