People always talk about how the wealthy pay less taxes then the middle class. How do they do this with the sale of real estate?
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Well, when selling then a 1031 exchange is typically the way. But real estate wealth is also built by leveraging equity in buildings for cash-out refinancing or taking lines of credit to use for down payments on additional property. This allows them to keep compiling a larger portfolio.
Additionally there ways to amortize buildings, deduct expenses (company lease of car used to check properties, company pays for iPhone tenants may call on, etc) to reduce income.
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