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
But a loophole in state law could inadvertently shield anyone pardoned by the president from state prosecution.
Consumer advocates have warned that banks could exploit even a small loophole created by regulators.
Although Ireland does regulate overseas donations to domestic campaigns, a loophole allows anyone to purchase Facebook ads urging Irish citizens to vote in a particular way.
In December, city leaders used a legal loophole by selling the city parks for $1,000 to a nonprofit, which swiftly removed the monuments under the cover of darkness.
City leaders used a legal loophole by selling the parks for $1,000 to a nonprofit, which swiftly removed the monuments.
The ability to give to a fund, receive a tax benefit, and not donate any of that money in your lifetime arose from a loophole in tax law.
Facing a new election year gun safety issue, Gov. Rick Scott urged state law enforcement officials Monday to seek federal aid to tackle a long-running gun-check loophole in Florida.
If all the facilities use the loophole to the maximum extent possible, that amount increases 146 percent, to a total of 450 tons, the report continues.
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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