270. How Investing in Real Estate Reduces Your Effective Tax Rate — Even Without REPS or STRs

In this episode, Ryan and Thomas explain how simply investing in rental real estate reduces your effective tax rate and puts you in a favorable position even without offsetting non-passive income (e.g., W-2 and active business income), including:

- A snapshot of the US Tax System.

- The critical role of depreciation in shielding income from tax.

- What is the effective tax rate calculated?

- How passive investors build "tax-free" income through real estate.

- Ways to minimize the impact of depreciation recapture.

If you're concerned using real estate professional status (REPS) or turning losses non-passive with STRs is the only way to use real estate to minimize taxes—this episode is for you.

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