Tax shelters are investments or activities that reduce ones taxable income....
Arrangement in which allowable tax deductions or exclusions result in the deferral of tax on income that would otherwise be payable currently.
Investments that offer some form of income tax protection in the form of deductions, deferrals or credits.
are legal methods taxpayers can use to reduce tax liabilities. An example is the use of depreciation of assets.
An investment vehicle that offers potential reductions of taxable income.
A way of excluding income from taxes by such means as depreciation, which is a paper expense and can offset other income.
a way of reducing or postponing taxation, by spending income on a pension plan, a life insurance policy, etc.
The ability of real estate holdings to reduce an investors tax liability through the use of cost recovery (depreciation).
A reduction of taxable income through the reinvestment of earnings on capital; any investment that postpones or avoids tax payments.
A method used by investors to legally avoid or reduce tax liabilities.
a method, transaction, or investment that yields tax benefits to the investor
an investment that an individual or company selects because it results in favorable tax deductions
an investment that requires substantial investment with a
an investment that usually requires substantial contributions with a degree of risk
an investment vehicle, which provides significant tax deductions in relation to its cost
an investment with tax deductions and tax benefits of greater value than the investment itself
a place where you can buy a financial instrument that guarantees you can avoid tax liabilities on ordinary income by incurring tax liabilities greater than your income
a procedure that reduces the taxpayers taxable income
a savings/investment plan which offers significant tax savings
An investment vehicle that can shield a part of an investor's ordinary income from taxation.
A technique that allows an investment to be legally exempt from federal, state, and local taxes to varying degrees.
An investment that offers some sort of tax savings such as immediate deductions, credits or income deferral.
An income property that generates artificial paper losses, due to depreciation or cost recovery, that are in excess of the income produced by the property. These artificial losses can be used to offset other taxable income earned by the owners. In general a tax shelter is any deferral, reduction, or elimination of a tax due.
A method used to legally avoid or reduce taxes.
In general, any means used to provide favorable tax treatment for all or part of an individual's or corporation's income. More usually, "tax shelter" is an investment device t generates tax deductions larger than the income from the investment.
This is an investment that offers tax savings in some form, such as immediate deductions, credits or income deferral.
Investment to acquire something of value with the expectation it will produce income and reduce or defer taxes.
Any income tax advantages to which a property owner may be entitled.
A creation under governmental regulation which allows an investor to delay or avoid payment of taxes upon income.
A general term used to include any property or other investment which gives the owner certain income tax advantages, such as deductions for property taxes, mortgage interest or depreciation.
An investment that lets the investor protect her money from taxes. e.g., municipal bonds.
An investment method by which the principal owner is able to pay either a reduced amount of taxes or none at all on the money set aside in reserve. Note: The IRS monitors such money investment vehicles quite strictly in an effort to weed out those attempting to commit fraud or tax evasion.
In real estate, allowable investment losses that can be used to reduce income tax liability.
A term often applied to real estate investment and refers to various tax advantages.
Sheltering income to reduce or avoid taxes. 1099 This is an annual statement sent to taxpayers and the IRS by the payer of interest 1099 (INT) and dividends 1099 (Div). Mutual fund companies would send these 1099 statements out at the end of the year to shareholders of funds that received a dividend or interest. Even if the dividends or the interest was reinvested back into the mutual fund the statements would still go out and taxes would still be owed on the earnings.
A phrase often used to describe some of the tax advantages of real estate investment, such as deductions for depreciation, interest, taxes, etc., which may offset the investor's other ordinary income to reduce the investor's overall tax payment.
An investment that produces after-tax income that is greater than before-tax income. The investment may produce before-tax cash flow while generating losses to shield, from taxation, income from sources outside the investment.
An investment or financial transaction that is designed to generate substantial tax deductions or credits. An abusive tax shelter is one that the IRS regards as having no economic, business or financial purpose other than to avoid taxes.
An investment selected mainly because it provides favorable tax treatment.
An investment that permits an investor to defer payment of taxes on current income to a later year; such as a real estate investment.
An investment that offers some form of tax advantage to the investor.
The offsetting of investment income by non-cash charges, such as reserves for depreciation, for the purpose of rcing income tax.
Term that refers to various tax advantages, one of which is often real estate investment.
The tax write-off possible through the depreciation benefits available on investment real estate ownership.
An investment that is planned to result in tax-favored treatment. The IRS has placed restrictions on tax shelters where the principal purpose of the activity appears to be the avoidance or evasion of taxes or where the activity might result in more deductible expenses than the investors have at risk.
Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. The methodology can vary depending on local and international tax laws.