Trump tax returns released -what do they show?

[Nathan Gesner]

NO POLITICAL STATEMENTS!

President Trump's tax returns were subpoenad and then released to the public. What do they show? According to the LA Times, Trump is a "real big loser" because his properties all show losses and that's why Trump pays so little in taxes. 

This demonstrates how little journalists know and it is an important concept for investors to understand. My rentals earned a net income (after expenses) of $150,000 in 2021. That is money in my pocket. But if you look at my tax return, all my properties are losing money or barely earning anything, so I pay very little in taxes.

The returns show that Trump is able to earn hundreds of millions but the money is mostly sheltered from taxes through legal deductions designed to incentive real estate investors.

If you don't understand the tax benefits associated with real estate investing, start learning! 

[Jay Hinrichs]

Quote from @Nathan Gesner:

NO POLITICAL STATEMENTS!

President Trump's tax returns were subpoenad and then released to the public. What do they show? According to the LA Times, Trump is a "real big loser" because his properties all show losses and that's why Trump pays so little in taxes. 

This demonstrates how little journalists know and it is an important concept for investors to understand. My rentals earned a net income (after expenses) of $150,000 in 2021. That is money in my pocket. But if you look at my tax return, all my properties are losing money or barely earning anything, so I pay very little in taxes.

The returns show that Trump is able to earn hundreds of millions but the money is mostly sheltered from taxes through legal deductions designed to incentive real estate investors.

If you don't understand the tax benefits associated with real estate investing, start learning! 

just to be fair and balanced like Fox News.. Depreciation is what creates the tax shelter but if you ever sell you have to recapture the deprecation and then pay tax.. so once you get on the RE investment hamster wheel you have to keep running till you die and then your heirs get a stepped up basis if that tax treatment is still there when we expire.. so once in you have to stay in.. you want to cash out and or you tire of rental real estate and being a landlord your going to have to pay the tax at that time..

So I think its also important to buy RE that can withstand the test of time and your going to hold .  And or use your 1031 to roll up into something bigger and nicer than where most of us start out.