tax-sheltered income

tax-sheltered income definition - business

tax-sheltered income

Income that is received and that would ordinarily be taxable but, because of certain noncash deductions such as depreciation, is protected from taxation. For example, rent that has been earned from a rental property is generally sheltered by depreciation on the property being rented. Compare tax-deferred income. See also tax-free income.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.