What are examples of tax loopholes?

American Opportunity Tax Credit. The American opportunity tax credit is an educational tax benefit that replaces and expands on the Hope credit.

Are legal loopholes legal?

In a loophole, a law addressing a certain issue exists, but can be legally circumvented due to a technical defect in the law, like when it is not specified. A lacuna, on the other hand, is a situation in which no law exists in the first place to address that particular issue.

Why is a loophole called a loophole?

The word loophole is commonly used, especially in regards to tax law. These narrow slits were known as loopholes, most probably derived from the Dutch word lûpen meaning to watch. The term loophole came into use in the seventeenth century in a figurative sense to mean a small opening or a outlet of escape.

What are some examples of legal loopholes?

9 Insane Loopholes You Won’t Believe Are Legal A Dude Drives Kids To School Every Day With A Tank. Inmate Shanking Is Ruled Justified Because Of An Anti-Robbery Law. We all know how prison is. You Can Legally Give Away Your Adopted Children On The Internet. Private Nudity Laws Let People Get Naked All The Damn Time. Two Men Build A Massive Underground Lair.

What are some of the best tax loopholes?

Capital gains tax rate. The current 15 percent capital gains tax rate for most investors and zero percent rate for lower income taxpayers are part of the much ballyhooed George

What are the best small business tax loopholes?

The Benefits of S Corporation Status.

What is the definition of a tax loophole?

tax loophole. A provision in the laws governing taxation that allows people to reduce their taxes. The term has the connotation of an unintentional omission or obscurity in the law that allows the reduction of tax liability to a point below that intended by the framers of the law. Explore Dictionary.com.