If you or your spouse work in real estate, the tax code offers some huge perks.

Congress has created generous incentives for real estate investing.

As you acquire assets you expect to produce cash flow and appreciate over time, you can also claim depreciation deductions, even though the property's economic value often doesn't decline nearly that fast.

And with 100% bonus depreciation back, first-year deductions can be substantial.

Normally those losses are passive and they can't offset income from your business or W-2 job.

But there's an exception!

If you or your spouse qualify as a Real Estate Professional and materially participate in the rental activity (a grouping election can sometimes help meet that test), those losses may offset ordinary income.

Imagine you own a business earning several million dollars a year. If your spouse qualifies as a Real Estate Professional, depreciation from your real estate portfolio could meaningfully reduce the tax owed on that income.

I've always joked there should be a "Real Estate Professional? Yes/No" filter on dating apps. Your tax status might be more attractive than your profile picture.

Most families we work with don't want to spend weekends managing rentals. So we invest alongside institutional-quality real estate managers, and with thoughtful structuring (including grouping elections where appropriate) it's sometimes possible to preserve these benefits without becoming a full-time landlord.

For many high-income families, real estate is one of the most powerful tax planning tools available.

This is general education, not tax advice. Real Estate Professional status and material participation have strict requirements — consult your tax advisor before acting.