00:00Large-scale landlords claim buildings are disintegrating while raising your monthly rent prices.
00:06They exploit a hidden accounting rule to shield their massive profits.
00:11The federal tax code allows institutional real estate moguls to deduct non-existent losses.
00:17This mechanism is legally known as fans of depreciation by the wealthy.
00:22While property values skyrocket, owners tell the government that structures are rotting.
00:28They claim this fictional decay as a legitimate business expense.
00:34This accounting magic creates a paper loss that cancels out rental income.
00:39You pay full taxes while they collect rent completely tax-free.
00:44The IRS assumes a building expires quickly even as it stands forever.
00:49This allows investors to keep cash while reporting losses on returns.
00:54Wealthy cartels use these artificial losses to shield other investments from taxation.
01:01They effectively erase tax bills using the very homes you inhabit.
01:05You are subsidizing their luxury lifestyle through a loophole for the elite.
01:10The system prioritizes asset growth over the actual value of labor.
01:14They treat your apartment like a decaying machine instead of an asset.
01:20This legal fiction ensures owners never contribute to our public services.
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