Simple English definitions for legal terms
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A tax shelter is a way to legally reduce or delay the amount of money you have to pay in taxes. It's like a special secret hiding place for your money that the government can't touch. Some tax shelters are not allowed anymore, but others are still okay to use.
Definition: A tax shelter is a financial strategy or investment plan that is designed to reduce or defer an individual's taxable income. Some tax shelters have been made illegal by law or invalidated by courts, while others remain legal or even encouraged by law.
These examples illustrate how tax shelters work by reducing or deferring taxable income. By taking advantage of tax deductions and deferrals, individuals can lower their tax bills and keep more of their money.