I recently met with a tax expert because I am in a high tax bracket and I pay a ton of taxes. We were basically exploring different ways to reduce my tax burden. The #1 source for write offs is owning a rental property. Depending on the size of the property, you can write off up to $100,000 (Tax guys, don’t shoot the messenger if I’m wrong, but this is what I was told). If you are paying a tax rate at 32%, that hundred thousand dollar write off is equal to $32,000 of extra income that year. So you can add that to the monthly income you make from the actual rent payments.

On a duplex, you get to double the write off. Own a four-Plex, you get to quadruple it. Smaller units might only have write offs as much as $50,000, but they add up.

People who make a lot of money and pay a lot of taxes know all of these loop holes. They claim that all of their income goes directly back into the business and then they don’t get taxed on it.