Correct me if I am wrong, so if say my earned income (w-2) in my job is say 155k, however I have a paid and clear rental home I inherited from my parents that is paid off that generates say 30k in income a year (passive).

I also have another rental I own that I do depreciate against and currently, to simplify, say I’m running even to cash flowing. Assuming I depreciate 30k a year for that one, would I be able to pretty much eliminate my passive rental income from the other property?

I haven’t looked at this aspect of the tax code at all since I don’t have any rentals, but my guess is you could since they are the same class (both passive).

It just seems to me that no matter the tax laws, wealthy people will find ways around it to make it more beneficial for them which is now leading me to sorta favor having no corporate tax at all in America to allow re-patrioting of profits from foreign countries to at least put the money back in the US. US companies won’t pay taxes anyways and this actually helps the small business (me) that can’t afford to do these kinds of things.

Just pass the income straight through…

For the guy with the 155k income, maybe it makes sense to do a multi purchase (assuming you have the savings) to generate income in 1 property and another to write off depreciation from both. Not too certain, but maybe some of the slum lords here 🙂 can share what they do.