Tax Shelters

Tax shelters are strategies or financial arrangements designed to reduce an individual’s or business’s taxable income, thereby lowering the amount of taxes owed. They often involve investing in specific assets, accounts, or structures that offer legal tax advantages, such as deductions, credits, or deferred income. Common examples include retirement accounts, real estate investments, or certain business expenses. While legal and widely used, some tax shelters can be complex and aggressive, and tax authorities closely scrutinize them to prevent abuse. Their goal is to optimize tax liability within the bounds of the law.