Paying Rental income tax? Or ways to avoid it legally?

[Amanuel Gebrelibanos]

For multifamily and comercial rentals,

1. Is it better to pay income tax or not? If so, why?

2. Is there any way to avoid paying rental income tax legally? If so, how?

[Michael Plaks]

Quote from @Amanuel Gebrelibanos:

For multifamily and comercial rentals,

1. Is it better to pay income tax or not? If so, why?

2. Is there any way to avoid paying rental income tax legally? If so, how?

1. Better to pay. It means that your cash flow is so great that you cannot offset it with tax strategies.

2. Yes, but it is case-by-case. Usually a thorough exploitation of depreciation with cost segregation, partial dispositions, various exceptions in Tangible Property Regulations etc. This is not DIY stuff, it requires professional help.