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As someone who wrote the book on how to legally reduce your taxes, it didn’t surprise me to see that President Donald Trump has allegedly paid little to no income tax over the last decade. The tax law is written to benefit producers like business owners and investors because those specific activities spur economic growth. Trump is a major producer with multiple businesses and real estate investments. Here are four methods the president likely utilized to reduce his taxes that you can use as well.
The biggest tax incentive for real estate investors is depreciation. Depreciation is deducting the cost of a physical asset over its useful life. While many countries allow depreciation only on new property, the U.S. allows us to use this benefit on used property, too. For example, if President Trump were to spend $100,000 on a property and it depreciates over 40 years, that means $2,500 a year is a deduction. However, it’s likely that he didn’t pay the full amount with his own money. Similar to when you purchase a house, you don’t pay the