### Question
What is the definition of tax shelter?


### Answer
The definition of **tax shelter** is as follows in *26 U.S.C. § 6111*:

> any investment—


(A) with respect to which any person could reasonably infer from the representations made, or to be made, in connection with the offering for sale of interests in the investment that the tax shelter ratio for any investor as of the close of any of the first 5 years ending after the date on which such investment is offered for sale may be greater than 2 to 1, and


(B) which is—


(i) required to be registered under a Federal or State law regulating securities,


(ii) sold pursuant to an exemption from registration requiring the filing of a notice with a Federal or State agency regulating the offering or sale of securities, or


(iii) a substantial investment

#### Citation:
  - *26 U.S.C. § 6111*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 61-INFORMATION AND RETURNS > Subchapter B-Miscellaneous Provisions**

