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
Person who will become the beneficiary if the original beneficiary dies before the insured. It is the policyholder's second election as beneficiary, dependent on the status of the primary ...
Legally executed and witnessed document giving another the power to act as one's attorney or agent in handling real estate dealings. The power may be general or specific. The power of ...
Whenever you hear the term “Baby Boomer” it references to someone who was born between 1946 and 1964. The moniker was coined as a way to represent all the people that were born ...
One to whom a gift or bequest is made. ...
Same as term graduated lease: A rental stipulation a varying rental rate. Rental rate are determined tied to periodic appraisals or an inflation or an inflation index. The provision is more ...
Method of appraising real estate based on the market comparison of neighboring properties having similar characteristics. Seeks to answer the question: What would it cost to substitute a ...
Insects that destroy the support wood in the structure of a building. Termite inspection should be periodically performed to detect their existence. If an infestation is confirmed, the ...
Considering future occurrences that may possibly arise. ...
An individual's option to fairly utilize another's property. An example is privileges under an easement. For example, a person receives permission to use a lake on the private property of ...
Have a question or comment?
We're here to help.