Tax Shelter

February 04, 2014  |     |     |   0 Comment

A tax shelter is a tool used to legally reduce the amount of tax paid by a person or business.

A local government may want to encourage investments in specific sectors such as real estate or oil and thus the government provides tax breaks to investors who invest in these assets.

Another simple example of a tax shelter could be an employee contributing to an employer-sponsored savings plan like a 401(k). These are all investments subject to tax breaks which allow the individual or business to pay less taxes.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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