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Notes -
A few more subsidies...
When you sell with a capital gain you have a couple years to buy a new house and avoid paying the capital gain
As in investor, you can do a 1031 exchange to sell one property and buy another without paying capital gains
As an investor, you can earn cash-free tax flow. This is because you are allowed to "depreciate" an appreciating asset. This lets you lose money on paper even if you earn money on practice.
Using "cost segregation" you can depreciate these appreciating assets much faster than the official schedule allows
Investors can finance up to 5-10 houses with similar rate advantages given to buyers of one home
A couple where one spouse is a real estate professional and the other has high income (such as doctor) can use the fake real estate "losses" of one spouse to offset the earnings of the other spouse and pay very little tax.
When you die, your heirs get a step-up basis. So if I bought a house for $100k in San Jose in 1973, my heirs won't have to pay capital gains when they sell it for $3.7 million in 2023.
Probably a lot more than I missed. The whole thing is a racket.
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