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Are you tired of paying a hefty sum in taxes every year? Who wouldn't want to keep more of their hard-earned money? Fortunately, there's a way to do just that - buy rental properties. Yes, you heard that right! The IRS tax codes actually reward people who invest in affordable housing, and rental properties are just that.

So, how can owning rental properties save you money on taxes? There are two main methods: depreciation and cost segregation.

Depreciation is the reduction in the value of an asset over time due to wear and tear. When you own a rental property, you can claim depreciation as a tax deduction. This means that you can deduct a portion of the property's value from your taxable income each year. The amount you can deduct depends on the property's value, the length of time you've owned it, and other factors. In essence, depreciation can help reduce your taxable income, thus reducing the amount of tax you owe.

Cost segregation is another tax-saving method that's often used in conjunction with depreciation. This method involves breaking down the various components of a rental property and assigning different depreciation rates to each one. For example, certain components of a rental property, such as the roof or plumbing, may have a shorter lifespan than the overall structure. By assigning different depreciation rates to these components, you can maximize your tax savings.

So, how much can you really save by owning rental properties? Well, in some cases, it's possible to pay $0 in taxes on a $200,000 income. That's right - by taking advantage of depreciation and cost segregation, you can significantly reduce your tax burden and keep more of your money.

Of course, owning rental properties comes with its own set of challenges and risks. You'll need to do your due diligence in terms of finding the right properties, managing tenants, and ensuring that you're complying with all applicable laws and regulations. However, if you're willing to put in the work, the potential rewards are significant.

In summary, if you're looking for a way to save on taxes and build wealth over time, owning rental properties may be worth considering. By taking advantage of depreciation and cost segregation, you can reduce your tax burden and keep more of your hard-earned money. So why not explore this investment option and see how it could benefit you?