Kiyosaki Why the rich are getting richer tax ?

[Charles G.]

Currently reading Why the rich are getting richer by Kiyosaki and for the record enjoying it just as much as his other books that I have done.

In Chapter 14 he gives the example of Mary a 40yr old W2 earner of 100K paying 30k a year in taxes. She also owns 10 rental properties that do not cash flow at all but do depreciate for 100k per year in total. As a result she does not have to pay any taxes on her W2 income.

Now I summarized it a little and he notes that he is giving a simplified example. However if this is anywhere near true I have been missing something for sure. I thought that you could only write off up to 25K against your W2 income as long as you earn 100k or less. From there the amount is diminished until you reach 150k in income at which point you lose the ability to write off real estate investment losses against your income taxes.

I went over this example numerous times before posting the question as I wanted to try and get my facts straight. I'm sure many of is have read the book so hopefully someone can set me straight!

[Frank S.]

Kiyosaki is a buffoon, I wouldn't trust anything on his books. In fact,  research the flaws within his work of fiction.

To start,  nobody pays taxes based on the Marginal Tax Rate on the first dollar,  we pay the Effective Tax Rate.  Many tout that same story because most don't know what's the difference. 

Get this instead, Every Landlord's Tax Deduction Guide by NOLO. Read it a few times,  buy the new book each year,  and learn from a good CPA.

Then,  recall Recapture Tax bites at 25% without 1031s.

Read Brandon's (above) articles and seminars.  He has some of the best information I have seen.

That statement is illogical, 

Ask yourself,  what would it take to have 10 properties loosing $100,000 per year? Don't you want to make some money? 

Then, for how long is that sustainable? 

Who would loan someone 10 mortgages if they all lose $10,000 per year with only a $100,000 salary? 

If they make money,  and 10k per unit is only depreciation.  Then,  the tax he describes fades away if the person is not a Real Estate Professional.

And so it goes.. 

You can discredit those malicious arguments with knowledge. 

I wish you the best,  I simply can't stand that clown. 

Frank