Mark Moss explains tax depreciation in real estate: the government lets you write off a portion of your building's value annually, reducing your tax burden on income you've already earned. He says this is why billionaires favor real estate, but most investors miss it entirely.
So those are 3 obvious ways that a lot of people have thought about in the past. But there's a 4th one that almost nobody thinks about. And this is the gold mine, in my opinion. The 4th one is tax depreciation. What that means is that when I buy the home, the government allows me to write off a portion of this house against my taxes every single year. What that means is this allows me to keep more of my hard income, the income I already worked for, already sweated for, already earned, and then I would get to the government at the end of the year, I get to keep now. So that's the fourth way. And this is the most important way. This is why the billionaires buy real estate. It's typically for tax depreciation, and almost nobody's focusing on that.
