Which of the following will legitimately reduce an investor's tax liability?
A)Tax evasion
B)Tax shelter
C)Tax penalty
D)Tax accounting
E)Tax portfolio

Question

Quizplus · Accepted Answer

A tax shelter is a legitimate way to reduce an investor's tax liability by investing in assets that provide tax deductions or credits, such as real estate or certain types of retirement accounts. Tax evasion, tax penalty, tax accounting, and tax portfolio are not legitimate ways to reduce tax liability and can result in legal consequences.

Which of the Following Will Legitimately Reduce an Investor's Tax