TAX SHELTER

tax shelter,n. A financial operation or investment strategy (such as a partnership or real-estate
investment trust) that is created primarily for the purpose of reducing or deferring income-tax
payments. • The Tax Reform Act of 1986 — by restricting the deductibility of passive losses —
sharply limited the effectiveness of tax shelters. — Often shortened to shelter. — tax-sheltered,adj.

[Blacks Law 8th]