tax shelter

noun

: a strategy, investment, or tax code provision that reduces tax liability

tax-sheltered

ˈtaks-ˌshel-tərd 

adjective

Examples of tax shelter in a Sentence

Recent Examples on the Web

McPhee taught clients who purchased the tax shelter how to use the trusts and foundation to evade paying federal income taxes on nearly all their income. —Kelly Phillips Erb, Forbes.com, 9 Aug. 2025

Prosecutors say McPhee, from 2018 to 2023, promoted a fraudulent tax shelter to taxpayers across the country, comprised of a private family foundation and three trusts. —Sam Tabachnik, Denver Post, 8 Aug. 2025

The agreement has already led to financing for four projects and opens up the Ivory Coast to Belgium’s tax shelter system, as well as its advanced audiovisual infrastructure, training programs, and network of festivals. —Essie Assibu, Variety, 3 July 2025

In total, the clients evaded more than $37 million in federal income taxes while Mellinger and one of his co-conspirators, who was a relative, earned a collective $3 million from promoting the tax shelter between 2013 and 2023. —Angie Dimichele, Sun Sentinel, 14 May 2025

Word History

First Known Use

1952, in the meaning defined above

Rhymes for tax shelter

• belter
• melter
• skelter
• smelter
• spelter
• welter

Legal Definition

tax shelter

noun

: an entity (as a partnership) or investment plan or arrangement whose principal purpose is the avoidance or evasion of income tax

also : an interest offered or purchased on the premise that it will provide favorable tax consequences