Tax Strategies for Mortgage Note Investing

[Stuart Grazier]

For all the note professionals out there:

I have accrued a decent portfolio of performing mortgage notes over the last couple of years and my tax bill at the end of the year has gotten quite large. As far as tax deductions, my CPA says there isn't much I can do to reduce the tax bill, as there aren't many things I can write off, and it's not like a physical property where I can depreciate the home. Or can I?

I know that quite a few people buy mortgage notes within a self-directed IRA to save on the taxes, but all of mine are currently owned in an LLC.

Besides opening up an IRA, I'm wondering if there are any other tax strategies / deductions that can help me reduce my tax bill next year....legal of course.

Thanks.