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WordNet-Online
Definitions from WordNet
Noun tax shelter has 1 sense
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Definitions from the WebTax ShelterDefinition:A tax shelter refers to any legal method or financial strategy used to minimize or reduce an individual or organization's tax liability. It involves taking advantage of various provisions in the tax code to lower the overall amount of taxes paid. Senses:Sense 1:A tax shelter can refer to an investment vehicle or financial arrangement designed to provide taxpayers with specific tax benefits. Example sentence: Many investors choose to put their money in real estate partnerships as a tax shelter to obtain the associated tax advantages. Sense 2:A tax shelter can also indicate any activity or transaction that allows taxpayers to legitimately reduce their taxable income or deductions. Example sentence: By making charitable contributions, individuals can use donations as a tax shelter to decrease their taxable income. Usages:Usage 1 - Popular:When most people talk about tax shelters, they refer to various investment vehicles, such as individual retirement accounts (IRAs), 401(k) plans, or annuities. Example sentence: A popular tax shelter for retirement savings is a Roth IRA, which provides tax-free growth on investments and tax-free withdrawals. Usage 2 - Local:In the local context, tax shelters can also include region-specific provisions or deductions that are applicable to a particular area or industry. Example sentence: In certain high-tech zones, businesses can benefit from tax shelters that provide incentives like reduced corporate tax rates. | ||||
tax law tax liability tax lien tax policy tax program tax rate tax return tax revenue tax shelter tax system tax with a code tax write-off taxability taxable taxable benefits taxaceae taxales
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