To understand how the rich pay little to no income tax, look at cost segregation studies.
Break down the costs of your all your property’s components—like floors, lights, and appliances. The IRS lets you examine these parts separately from the building itself.
When you do this, you can deduct the costs from your taxes, creating a “paper loss.”
If this paper loss is large enough, it can offset your regular job (W-2) and freelance (1099) income, leading to no tax due.