Burned-Out Tax Shelter

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January 1, 1 6 min read Definitions

Burned-Out Tax Shelter Tax Deductions Real Estate Investment Depreciation Interest Deductions Mortgage Payments Tax Shelter Net Operating Income (NOI) Taxation Real Estate Terms

A Burned-Out Tax Shelter refers to a real estate investment that was once advantageous for providing large income tax deductions but has lost its tax-sheltering benefits over time due to the reduction and eventual nil in depreciation deductions and the decrease in interest deductions as mortgage payments increasingly cover the principal.