An October 13th, 2018 article in the New York Times discussed how Jared Kushner avoided paying almost no federal income taxes several years running. According to the article, Kushner, who has a net worth of $324M plus, paid little to no taxes from 2009 through 2016. Just by my first two sentences, you can see the slant of the article – how things are tilted unfairly toward the rich.
To avoid paying taxes, the article pointed out that Kushner used “depreciation, a tax benefit that lets real estate investors deduct a portion of the cost of their buildings from their taxable income every year.”
Before we get too far into this post, let me state one thing – I didn’t vote for the current president nor do I like how he’s running the White House. That will be the most political I say on this blog as I’ve tried to be very apolitical. However, I’m going to defend Mr. Kushner’s use of depreciation throughout this post and I don’t want anyone to believe I’m doing so for political reasons. I’m doing it strictly because it’s the right thing to do.
As we get started, let me be clear. The depreciation “tool” is available for every real estate investor, but you must get in the game to use it. Otherwise, you’ll just be standing on the sidelines, wondering how come there are others running up and down the field.Read More