00:00Your landlord collects your monthly rent check while telling the IRS that the building is dying.
00:05While your rent increases every single year, the tax code pretends the entire property is vanishing.
00:11This accounting trick is called depreciation, allowing investors to deduct imaginary losses from their real profits.
00:19The government assumes every residential building will physically fall apart in exactly 27.5 years.
00:26They write off a massive portion of the structure's value annually to offset their rental income.
00:32Even as the local housing market explodes, their ledgers show a steady, scheduled decline in value.
00:38You pay your rent with hard-earned dollars that have already been taxed by the federal government.
00:43They pocket your check and use phantom decay to make that income legally invisible every year.
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