Understanding Depreciation: Tax Implications for Real Estate Investors

Welcome back to another episode! Today, we’re diving into how depreciation really works and why so many people misunderstand its impact on their taxes.

📌 In This Episode, We Cover:

• The #1 Misconception About Depreciation – It’s NOT dollar-for-dollar tax savings!

• How Much You Really Save – A $100K depreciation deduction doesn’t mean $100K in cash savings—it means you’re saving on the taxes of that amount.

• Active vs. Passive Income – Why it’s critical to match your losses to the right type of income.

• Real Estate Professional Status (REPS) – How it can turn passive losses into active losses, letting you offset more of your income—including your spouse’s!

If you own real estate, run a business, or are looking for ways to legally minimize your taxes, this episode is for you.

🔊 Tune in now! And don’t forget to subscribe so you don’t miss next week’s episode, where we break down how to qualify as a Real Estate Professional and unlock even more tax-saving strategies!