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!