I am in one of the higher tax brackets and could be saving around 40k~ a year on taxes with this.

I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

Assume for a moment its close to max tax bracket ie. nearly 49% (Federal + State), roughly $17K.

When we looked at what his cashflow is currently, and then considered what he would net out of a sale post tax, he decided to keep owning the properties.

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

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.

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

@Daniel MadhavapallilYou should hire a tax professional. 

The tax paid from your lending proceeds should be the equivalent of your tax rate I would think.