How to pay zero taxes while owning a business and real estate?

[Lingo Lin]

I get the tax code is a series of incentives or penalties depending on how one structures their financial house.

Now if I own a business and invest in real estate, how can I effectively pay zero in taxes?

If I’m creating many jobs and creating housing for people, given an example, how can I pay little to no taxes?

Any real world example out there?

[Greg Scott]

Lingo:

Reducing taxes is not like seeing a unicorn -- a rare and magical event.  This is like seeing a tree.  It happens all the time, every day.

Take a simple example, a $120K rental house (land is worth $20K, the house $100K).  Let's say it cash flows $300 per month (net of everything) which would be fairly typical.  At the end of the year you have put in you pocket $3600.  When you file taxes, you get to deduct $3636 of depreciation so according to the IRS that property lost you $36.  How much income tax do you pay on losing $36?