Ever wonder why rich people collect real estate the way you collect sneakers?
They pay no taxes while getting richer
Well, almost no taxes. Here's how:
* If you can show that your properties lost more than they made, you're paying zero taxes *
It's called Depreciation.
Let's unpack this:
As far as accounting, your assets lose value over time because of wear and tear...
Just like your body does....
Ever see a 100 year old run a marathon after all?
Yeah, me either...
So in real estate, you can subtract this loss of value from your income.
And there's tons of value loss you can claim.
This is how the Donald paid $750 in income taxes after all.
So how exactly are you getting richer like this?
Glad you asked! It's only in accounting terms that your properties lose value. In actuality, over the long term, they're getting more valuable. And you're getting richer.
It's a a rigged system in favor of real estate owners.
But don't hate the game, hate the player.
Which is to say: if you can't beat them, join them.