Tax shelters involve the use of state and federal tax laws by individuals and businesses to minimize their taxable income and, therefore, the taxes they are required to pay. Tax shelters are legal; tax evasion is not. Examples of tax shelters include 401 (k) retirement plans, IRA accounts, and cost segregation analysis/accelerated depreciation. Both businesses and certain types of real estate can be purchased using 401(k) and/or IRA funds.
The use of tax shelters and tax planning is something that should be done in consultation with a Certified Public Accountant (CPA) or Enrolled Agent.
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