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
Currently, through a loophole in PASPA, only Nevada does.
Former Dallas County sheriff Lupe Valdez, who is favored to win Tuesday’s Democratic gubernatorial runoff and face Abbott in November, has called for stricter background checks and closing of gun sale loopholes.
Seventeen-year-old Dimitrios Pagourtzis did not obtain the guns illegally through some loophole in the law, authorities said.
There has simply been no way around this rule outside of the very, very few legal Motorex Skylines and handful of loopholes involving museums and specific dealership-owner rules.
Facebook and other technology companies fall right through that loophole.
So much back-and-forth about the amendment has lead to a lot of legal loopholes around the possession of firearms.
Unfortunately, the subsequent deal struck by the United States and Russia to remove Assad’s chemical-weapons stockpiles was full of loopholes, weakly enforced, and ultimately circumvented by Syrian and Russian deception.
The report notes that the organization has no information to suggest that these 18 facilities will take advantage of the loophole.
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.
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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