What are the tax advantages for a W2 income $150K investor with 1-10 properties that have mortgages and low cash flow? Passive income losses are carried forward... strategy to take advantage of the tax benefits?
Tax free rental income (most of the time after depreciation.)
Debt payoff
Business write offs including your cell service/phone, computer, internet, etc
Accumulated “phantom losses” from depreciation to use against future gains
Tax advantaged Inflation hedge
Can be borrowed against
Allows you to sell your primary tax free and move in to your beachfront rental
Can be passed on to heirs with no taxes due.
You’re in charge of the timing of tax deductible spending.
Once they are paid off you should be able to live off the 10 properties and never have to touch your “retirement accounts” where the plan is to hope you die before you run out of money.
If you ever retire from your w-2 job, or get fired. You’ll be able to deduct up to $25k off regular income under $100k. (I assume you knew this and chose $150k on purpose.)
If you treat these investments like a Roth IRA on steroids you really can't go wrong.