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My First Million

My First Million

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Reduce taxable income while building wealth through real estate investments

High-income entrepreneurs and business owners with significant annual income

1-5 years for full implementation and benefits

What Success Looks Like

Significantly reduced tax burden while building real estate portfolio that appreciates over time

Steps to Execute

1

Ensure spouse qualifies as real estate professional for tax purposes

2

Identify experienced real estate investment partners with track record

3

Deploy cash from high-income year into real estate deals

4

Use depreciation to offset active income on tax returns

5

Reinvest returns into additional properties for compound growth

Checklist

Calculate current tax burden as percentage of income
Research real estate professional status requirements
Vet potential investment partners thoroughly
Consult with tax strategist familiar with real estate
Structure investments to maximize depreciation benefits

Inputs Needed

  • Significant annual taxable income
  • Cash available for real estate investment
  • Spouse willing to become real estate professional
  • Trusted investment partner or deal flow

Outputs

  • Reduced current year tax liability
  • Real estate portfolio generating returns
  • Ongoing depreciation benefits for future years

Example

Entrepreneur making $500K annually partners with experienced real estate investor, deploys $200K into properties, uses depreciation to eliminate taxes on $150K of income while properties appreciate 8% annually