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Simple English definitions for legal terms

Tax shelter

Read a random definition: action ex delicto

A quick definition of Tax shelter:

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.

A more thorough explanation:

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.

  • Retirement accounts, such as 401(k)s and IRAs, are a common type of tax shelter. Contributions made to these accounts are tax-deductible, which means they reduce your taxable income for the year. Additionally, any earnings on the investments in the account are tax-deferred until you withdraw the money in retirement.
  • Real estate investments can also be a tax shelter. Rental properties can generate income that is offset by expenses such as mortgage interest, property taxes, and repairs. These expenses can be deducted from your taxable income, reducing the amount of taxes you owe.

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.

tax sale | tax withholding

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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