Instead of paying $3 million in taxes, you can invest that money in a building and write off depreciation and other costs. Real estate ownership offers far larger tax deductions than the standard deduction most salaried workers claim.
Instead of spending that $3 million on paying taxes, he spent $3 million on buying a building. So when he bought the building, the IRS says that you can write off portions of that building as deduction, right? You can deduct part of it. Like when you, if you're working, if you work a contract job, if you work a job and get a paycheck and they take the taxes out, you do a standard deduction.
