Tax strategies with Turnkey investing

[Jay S.]

Hi fellow BP members, 

I am relatively new to BP and so glad that I found this site. It has immense amount of information on RE investing. Kudos to BP for creating this huge platform to connect and share "everything real estate". I only have experience managing one rental so far. What I would like to ask the community members is about tax strategies related to buy and hold SFR, more specifically turnkey rentals that I am interested in. What I have realized is that above a certain income level, tax advantages of owing a property diminish (or delayed for ever) as far as property depreciation, expenses and mortgage interest write off goes. I still get the other 3 out of the 4 advantages (cash flow - very minimal with financing option, appreciation - which is pure speculation, mortgage pay down - the only life saver, depreciation/tax advantages - diminishes for high incomes). So I am scratching my head on how so many other investors might be making it work. I understand that there are strategies like claiming the real estate professional status but to me (and most likely to IRS), that's still passive. So tax advantages wont be allowed against the active income.

Any pointers would definitely be helpful for me to decide if getting into turnkey rentals is right for me. Thank you