Why do all these rich people say you don't have to pay taxes?

Because you don't have to pay taxes.

The tax game is a system and until you learn that it is a game,

you are not going to be able to leverage the tax code.

The wealthy people have been playing

this game for years and they have fun at leveraging the tax code.

Yeah, so I think you would agree but I'm just going to say it. I think that real estate gives the most tax advantages out of anything in the tax code.

Absolutely. So why is that? What is it about real estate that allows you to not have to pay taxes?

What it is about real estate is when you're going into real estate you're buying such a big

asset and because you're buying such a big asset the And because you're buying such a big asset,

the government is going to turn around

and give you depreciation.

Depreciation allows for you to create a paper loss

on your tax returns that can offset W2 and 1099 income depending on how

you're leveraging that investment property. So you see a lot of wealthy

investors in buying real estate year over year and doing strategies like the cost segregation

study to create a paper loss on the returns that can offset their active income.

So explain to people how depreciation actually works like numbers wise like if I buy a property here in

Vegas you know let's say it's a five hundred thousand dollar home yeah you know

median price you know how is that going to help me not pay taxes?

Yeah, so when you buy an investment property,

you're buying two different things.

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