414 | House FIRE | Alan Corey
ChooseFI
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You Don't Have to Pay Income Taxes on a $80,000 Property
Income is this additional deduction called depreciation which as you said there's no depreciation on land but it's on all the buildings. In that case you're actually deducting that when you're filing your tax return sure you had that $2400 of income but you get this additional deduction of $2,909 so you're actually showing a taxable loss of $509 which is fascinating. Then you take that extra $509 and then you apply it to another property so if you made $509 on another property then you don't have to pay taxes on that. The more properties you have the more of these sort of whack-a-mole game you can play where you take this depreciation
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