Tax Shelter
Definition of "Tax shelter"
Investments, usually in limited partnership, that can protect of defer shelter) part of the income from current taxes. Under current law, passive leases can be applied up to passive income. Typically, a large amount of capital along with a significant amount of debt is needed. Allowable deductions are typically allowed only to the amount at-risk. A tax shelter is advantageous by the taxpayers in high tax brackets so they can take losses from it to reduce their taxable income. A number of real estate tax shelter exist. there is a penalty of 1% of the total amount invested for the failure to register a tax shelter. The failure to report a tax shelter identification number has a penalty of %250. Penalties for "abusive" shelters may be staggering. Tax shelters have been significantly restricted in recent years.
Popular Real Estate Terms
Accurate measurement of land for the purpose of determining the boundaries of its perimeter, its contours, and area. Survey are generally required by banks and other lending institutions as ...
How much of an investment made in real estate has been recovered expressed in dollars or in percentage terms. ...
If you’re in the business of purchasing properties, maybe as a real estate investor, you might be wondering what is cost segregation. Well, first of all, it’s a study that deals ...
Net return rate earned on an equity investment in real estate after deducing any interest costs and taxes. ...
The Exclusive Right to Sell Listing is a type of Listing where the Listing Broker/Agent wins his/her commission even if he/she wasn’t directly responsible for the sale.Let’s ...
person's behavior partly genetic and partly learned through experience over time. Some people have good personal traits while others have poor ones. ...
The best atrium definition is that of a room with a roof open displaying the sky, but as with most things architecture (or even art) the atrium definition has changed with the passing of ...
Primary business district of a city or urbanized area having the areas major governmental offices, professional, and retail businesses represented. ...
Individual engaged in selling a product or service. The product may be an investment in real estate. In some instances, state law may require licensing to safeguard the public by requiring ...
Have a question or comment?
We're here to help.