I also am aware that we are increasing our net worth through real estate, but we are paying so much in taxes and cannot claim the renovations or improvements on the properties we own due to our income.   

So often rentals don't have taxable income; and once they do it's still not subject to the payroll taxes paid by W2 wages or on self employed income. 

I've met some very highly specialized experts in low income tax credits, corporate accounting and tax, as well as tax resolution. 

Being able to use real estate to offset taxable income requires some sort of participation on his end.If he wants you to be the boots on the ground, it will likely be hard for him to reduce his taxable income.

First off to be clear when using income for these screening purposes its GROSS income (before taxes).

Net investment income tax= 3.8%I was aware of the Long term capital gains tax, but I was surprised to find out about the Depreciation Recapture and the Net investment income tax. 

They are classified as portfolio income.

When it's sold it will be taxed as capital gains tax and may also have some unrecaptured depreciation which is capped at 25% and  recaptured depreciation as well which can be up to your ordinary income tax rate.

Redirecting wages does not exempt the worker from income or self-employment taxes, nor does it create a tax-free loophole.Misclassifying an employee as an independent contractor to avoid payroll taxes can result in IRS penalties, back taxes, and fines for both the employer and the worker.

The lease would establish income, which can be used for loan qualification purposes.