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
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 that generates tax deductions larger than the income from the investment
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
A tax shelter is a way of arranging the finances of a business or a person so that they have to pay less tax. a plan or method that allows you to legally avoid paying tax
A phrase often used to describe some of the tax advantages of real estate or other investments, such as noncash deductions for cost recovery (depreciation), interest, taxes and postponement or even elimination of certain taxes The tax shelter not only may offset the investor's tax liability relevant to the real estate investment but also may reduce the investor's other ordinary income, which reduces overall tax liability
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