For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

When you factor in the tax deduction you get on the mortgage interest, this 5% rate on a CD closes matches what you would save on interest by paying down the mortgage.

So, like many business”deductions” that really aren’t; dubious classifications of income; and “creative timing” of transactions, it works - until it doesn’t. 

If you could expense these items then I should be able to take these deductions the moment the transaction occurs, but that's not the case.

W-2 will bring home after deductions about $2400 every 2 weeks or $62,400 a year.  

Depending on the cause of the taxes it could be offset with write off's, deductions, carry overs, etc.You could always take out a loan through a cash out refinance to pay off or down the lien.

Plus let's face it: it's a bit hypocritical to complain about tax incentives as real estate investors because we get a lot of tax advantages ourselves (write offs, depreciation, pass through deductions etc. these are some of the main reasons many people invest in real estate). 

Deduct from tenant.5.

You'll need to report the rental income at tax time, but you can also deduct related expenses, so keep good records.

(if I made $200k I would be taxes on 80k after taking the standard deduction and child tax credits, etc.