I understand the concept, that people does it for tax advantages and I would understand the concept for a period of maybe up to 3-5 years but not for 10 years + while assets are growing tremendously.
The answer “tax fraud” is a little bit to easy because it doesn’t pop up the whole time.
I didn’t found the answer on the first google page but I’m also happy with an simple url 🙂
Thx for your time
In: Economics
It’s not done with a regular job. Real estate investing is probably the closest one can get without committing fraud. Say you own 10 apartments worth $1m. You put down $200k and have mortgages for $800k. You live in one apartment, collect rent on the other 9 at $1000/mo. Your mortgages (PITI) total about $6000/mo. You lease a large SUV “company car” to check on your properties, haul materials, etc. for $1000, including gas, insurance. You can deduct for depreciation on your properties on your taxes. You have a place to live, a nice car, $2000/mo. for food/social life but probably show small enough actual income to pay no taxes.
Latest Answers