Abusive Tax Shelter

Definition of "Abusive tax shelter"

Marc Cardullo real estate agent
Marc Cardullo, Real Estate Agent Coldwell Banker Residential Brokerage - Cape Elizabeth

Illegal tax deduction (as determined by the Internal Revenue Service) taken under the auspices of a limited partnership. One abuse of taxes is inflating the value of purchased assets far beyond their fair market value. Once the IRS determines that tax deductions are illegal, participants in the limited partnership are subject to the payment of back taxes, interest due on the back taxes, and penalties.

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