What is tax shelter?
Cash income shielded from current tax, principally by the depreciation deduction, which reduces taxable income without a current cash outlay. Generally a deferral, with the tax surfacing at sale.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.