Loopholes of the Rich Quotes

“One of the benefits of real estate investments is that the real estate loopholes generally give you more deductions than you receive in cash flow. The best write-off of all is depreciation, which you can maximize to create paper losses. However, if your income is more than $150,000 per year, you cannot use those paper losses as deductions against your other income to reduce your taxes. That’s the spot Jean had been in.”
― Diane Kennedy, Loopholes of the Rich: How the Rich Legally Make More Money and Pay Less Tax

“If you spend more time in real estate activities than you do in your regular job and the number of hours in real estate exceeds 750 hours in a year, you can fully write off your real estate paper losses against other income—no matter how much money you make and no matter how much your paper losses are. Of course, Jean kept good records to document her real estate professional status, so she had no worries from an IRS audit.”
― Diane Kennedy, Loopholes of the Rich: How the Rich Legally Make More Money and Pay Less Tax