Real Estate investment Financing, Depreciation and Recapture

The most important benefit I see holding rental is depreciation ! Here are the links that helps.


With depreciation, rental income for many investors is tax-free. That’s very powerful. If someone’s effective tax rate is 30% say, rental income of 100K is equivalent to W2 income of 143K. Enough for a family to live comfortably in the Bay.


This is what I plan to do, live tax free for life !

Until… the house has to be sold upon their death.

You need to have 3 people on your team: CPA, attorney and estate planner. Only fools pay inheritance taxes.