Tax Shelter

A tax shelter is a financial strategy used to reduce or defer taxes owed by an individual or business. It often involves specific investments or assets that the tax laws allow to lower taxable income. Common examples include retirement accounts like IRAs, where you can save money tax-free until retirement, or real estate investments that offer tax deductions. Essentially, tax shelters provide legal ways to minimize tax liabilities, helping individuals or businesses keep more of their income. However, it's important to use them responsibly and within the law to avoid potential penalties.