BRRRR and lower income on tax returns

[Adam Craig]

I have an internet business, rental property business, and flipping business. I received my tax returns yesterday which were 96 pages long - they get longer every year. I should be more informed about how my taxes are calculated but every time I look through them I scratch my head and thank god I am not an accountant.

I used to pay through the roof in income tax when I was just doing my internet retail business. But I now have 30+ rentals and my wife got her real estate licence to help buy/sell our investments - we are able to apply real estate losses to my internet business since she now have a real estate professional designation.

I am trying to explain to my wife how we are doing well but when she sees a lower and lower number on our AGI - she becomes concerned.

I am a BRRRR investor so my depreciation expense for each property is big since I spend 30-60K rehabbing most properties.

Are there more of you guys out there who can comment on feeling like they are doing well but the tax returns show low income? Possibly explain it in a way I can explain it to her :)

I am going to have a sit down with her and my CPA but wanted to start on BP first.