https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

You need to have the income and tax liability to support the depreciation.

.💡 Tax AdvantagesThis is where my tax brain gets excited!

So the question becomes based on their individual and personal tax situation what is the estimated tax burden they'd save? 

My strategy incorporates asset protection measures like LLCs, specific trusts as well as professional property management to spread risk and ensure quality operations.As well as using tax codes to my benfiitSection 179, IRC Section 162, Cost Segregation and Bonus Depreciation and later 1031 them out for larger projects. 

Sellers can avoid paying transfer taxes to the county, while buyers are spared from facing significant property tax increases.However, it's important to note that lenders typically only approve these loans for properties with five or more units.

Tax-Free Exchanges: While 1031 exchanges aren't available to SDIRAs, the tax deferral within the account means you can sell property and reinvest proceeds into new opportunities without immediate tax consequences.

Being a real estate professional allows you to treat the income as non-passive, allowing higher high income tax payers to pay less in taxes.

@Frank FloresInvesting in delinquent tax sales in Houston can be profitable, but it comes with risks.

We are in a very low tax bracket this year but should be 10% higher in 2025.