Examples of loophole in a Sentence
She took advantage of a loophole in the tax law.
His attorney has been hunting for a loophole that would allow him to get out of the deal.
tried to close a loophole in the new legislation
Recent Examples of loophole from the Web
The Democrat senators introduced four bills that would require universal background checks, raise the minimum age to purchase a firearm to 21, require all guns to be registered with local law enforcement and close the gun show loophole.
Perhaps that means finding a loophole in the constitution, or changing it, or building a new structure of the state.
For starters, the state Legislature should close the gun show loophole and ban assault weapons in Oregon.
Schiavoni said the gun show loophole - where private parties such as at gun shows do not have to perform a background check during a sale - needed to be closed.
Those in favor of stricter measures lament its lack of a ban on semi-automatic weapons, expanded background checks and proposals to close the gun show loophole onchecks and waiting periods.
Trump favors adding mental-health information to the NICS system and does not support closing the gun-show loophole.
No concrete legislative solutions: no closing of the gun show loophole, no federal approval for universal background checks, and no ban on bump stocks.
Data from Pew research shows that the majority of NRA members are in favor of universal background checks, closing gun show loopholes and preventing the mentally ill from purchasing weapons.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'loophole.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of loophole
Financial Definition of LOOPHOLE
What It Is
A loophole is an exception that allows a system to be circumvented or avoided. It usually refers to legal, taxation, or security strategies that are exploited for personal gain.
How It Works
Loopholes are failures of a system to account for all conditions, variables, or exceptions. To illustrate a legal loophole, consider a local development law that requires even an unoccupied building to pay real estate taxes so long as it receives a certificate of completion. In order to avoid paying taxes, a builder may exploit this loophole and choose not to "complete" the building.
An example of a tax loophole is the tax break for small businesses who invest in "heavy vehicles". The tax break applies if the vehicle is used at least 50% of the time for the business. Business owners may exploit this loophole by upgrading their own vehicles to SUVs, which are considered "heavy" under the tax law, and thereby gain a personal financial advantage.
In most instances, loopholes that lead to excessive abuse are corrected by subsequent regulations and laws.
Why It Matters
While loopholes may save money or allow a purchase that would otherwise not be economical, the use of loopholes is considered questionable. Exploiting loopholes may lead to intensive scrutiny and audits, or even just a feeling of bad faith. For example, a tax payer should be aware when a tax consultant advises of specific tax advantage of whether the advantage is claimed on the basis of an allowable deduction or a loophole.
LOOPHOLE Defined for English Language Learners
Definition of loophole for English Language Learners
: an error in the way a law, rule, or contract is written that makes it possible for some people to legally avoid obeying it
LOOPHOLE Defined for Kids
Seen and Heard
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