tax shelter (Meaning)
Wordnet
tax shelter (n)
a way of organizing business to reduce the taxes it must pay on current earnings
Synonyms & Antonyms of tax shelter
No Synonyms and anytonyms found
tax shelter Sentence Examples
- The wealthy often utilize tax shelters to minimize their tax burden.
- Offshore tax shelters allow individuals to avoid paying taxes on their foreign income.
- Real estate investments can serve as effective tax shelters due to deductions for depreciation and mortgage interest.
- Charitable donations can provide tax shelters by reducing the donor's taxable income.
- Retirement accounts, such as 401(k)s, function as tax shelters by deferring tax payments until funds are withdrawn.
- Companies use tax shelters to reduce their corporate tax liability.
- Some investments that provide tax shelters are subject to strict regulations and reporting requirements.
- The use of tax shelters requires careful consideration and professional advice.
- Aggressive tax shelter schemes can result in severe penalties if deemed illegal by tax authorities.
- Tax shelters can be an effective tool for managing tax liability, but it is crucial to understand their limitations and potential risks.
FAQs About the word tax shelter
a way of organizing business to reduce the taxes it must pay on current earnings
No synonyms found.
No antonyms found.
The wealthy often utilize tax shelters to minimize their tax burden.
Offshore tax shelters allow individuals to avoid paying taxes on their foreign income.
Real estate investments can serve as effective tax shelters due to deductions for depreciation and mortgage interest.
Charitable donations can provide tax shelters by reducing the donor's taxable income.
