How Millionaires Get Into the 12% Tax Bracket

Summary

This video explains how high-income earners, particularly those with W-2 jobs, can use short-term rental investing to dramatically lower their taxable income and move into a lower tax bracket like 12%. The core strategies involve leveraging the "short-term rental loophole" to classify rental losses as active, and then creating large "paper losses" through accelerated depreciation via a cost segregation study. By combining these real estate tax benefits with other deductions, it's possible to legally offset hundreds of thousands of dollars in active income.