A tax shelter is any investment designed to reduce or avoid income taxes. Congress created these Tax shelters to serve some major economic or social goal.

As a citizen, you have an obligation to the country's tax system, but you also have an obligation to yourself to know your rights under the law and possible tax deductions and to claim every one of them.

Real estate is a great tax shelter
Traditional tax shelters have included investments in real estate, oil and gas, equipment leasing, and cattle feeding and breeding programs.
Real estate is the most popular tax shelter. Real estate provides leverage, an inflation hedge, cash flow and equity buildup.

As your property appreciates in value, you are allowed a paper deduction for depreciation. If structured correctly, you buy the property with your down payment.