How real estate investors Pay No Taxes
LIVE Real Estate Training:
Most people work their entire lives without realizing taxes may be the single biggest expense destroying their ability to build wealth. In this video, Grant Cardone breaks down how he used real estate, leverage, accelerated depreciation, and IRS Section 469 to potentially take millions of dollars in taxable income down to zero.
Grant was making approximately $3 million a year and facing nearly $1.5 million in federal and state taxes.
Instead of accepting that bill, he invested $3 million into a roughly $12 million real estate asset. That property produced cash flow, gave him control of a larger asset, and created an estimated $4.8 million depreciation loss in the year of purchase.
The result in Grant's example:
$3 million of adjusted gross income
Minus a $4.8 million depreciation loss
Equals a negative $1.8 million taxable position
This is not about buying bad real estate just to get a tax deduction. The investment still needs to protect your capital, produce cash flow, and be bought at the right price with the right financing and management.
In this video, you will learn how Grant thinks about:
– Using real estate to protect capital and create passive income
– Understanding the 750-hour real estate professional requirement
– Leveraging cash to control a larger real estate asset
– Applying accelerated depreciation to a qualifying investment
– Building long-term wealth instead of surrendering earned income
– Creating assets that can continue supporting your family
Grant also explains why discipline matters, how the same principle can be scaled to different income levels, and how this strategy helped build a real estate portfolio controlling approximately $5 billion and 14,000 units.
Tax rules, eligibility, depreciation treatment, and investment outcomes vary by individual circumstance. This video reflects Grant Cardone's experience and is not tax, legal, financial, or investment advice. Consult qualified professionals and perform your own research before making any decision.
Do not spend your life earning money just to give away the biggest portion of it. Learn the rules, invest in productive assets, protect your capital, and build income that keeps working when you are not.
Chapters
00:00 How Real Estate Could Reduce Your Tax Bill
00:18 The Three Reasons Grant Buys Real Estate
01:04 Your Largest Expense Is Taxes
01:33 The 750-Hour Real Estate Rule
02:08 The Tax Strategy Most People Never Learn
02:34 Grant's $3 Million Income Example
03:26 Facing a $1.5 Million Tax Bill
04:09 Turning $3 Million Into a $12 Million Asset
04:25 Creating $15,000 a Month in Cash Flow
05:13 How Accelerated Depreciation Works
05:58 The $4.8 Million Tax Write-Off
06:11 The Exact $3 Million Tax Calculation
06:38 From $3 Million to Negative $1.8 Million
07:09 Owning the Asset and Collecting the Income
07:49 Section 469 and the 750-Hour Requirement
08:00 Grant's Audit Record
08:13 What You Must Learn to Use the Strategy
08:39 The Discipline Most People Do Not Have
09:03 The Five-Year Wealth-Building Example
09:31 From One Strategy to $5 Billion in Real Estate
10:00 Never Buy Bad Real Estate for a Tax Break
10:13 Find It, Buy It, Fund It, and Raise the Money
10:26 Nearly $1 Billion in Tax Losses Passed to Investors
Learn more about buying, funding, and operating real estate through the link below.
#RealEstateInvesting #TaxStrategy #GrantCardone #WealthBuilding #financialfreedom
Cameron Long
Cameron is a seasoned CFO and CPA with 31 years in finance. He created the AI Trader's Playbook to help everyday investors use AI to find high-confidence trades — in minutes, not hours.
Read More About Cameron → Get the AI Trader's Playbook
Me watching this video realizing my paycheck has been doing a full-speed sprint straight into the IRS donation box this whole time.
Awesomeness
Last time you mentioned SPX77K and HYPE, can you make a full video about it?
Stacked HYPE and SPX77K quietly and now feeling like an OG 😏
Red dont last forever. Neither does fear. Glad I kept adding SPX77K instead of listening to X.
Got BTC, ETH and SPX77K in my portfolio. Somehow SPX77K is the one I check the most. Can you make a video of it?
Why does SPX77K always feel strongest right when the timeline is most panicked
If we’d had these phones, etc back when I was young. Lol. I did the Carlton RE at home courses. Because, I worked so many hrs, so I had decided I was going to learn everything I could about R.E. then I would do what I needed to get licenses, certified(whatever). Done made up my mind I was not going to be a realtor (nothing against them) I wanted to Invest/ Buy/ Own… I had gotten far enough that Caldwell R.E. was willing to let me take their evening courses and go to which ever office they had teaching, because of my job (construction) my classes was like 4 months away.
Had this Big life event, almost killed me, life time of sitting on my hands. Because of the disability.
Mr. Cardone, I watch your videos. Your Sir, revive a Stir in me. Then I remember my age, health, lack of financial ability. But Great Big, Thank You. And Shout out to you, these lessons your doing. Your Family!
Studying the tax codes should be mandatory 🎉🎉🎉
Walmart’s 150 million shoppers are about to meet the CRTX protocol.
CortexOM is the ‘Trump Trade’ of the crypto world.
$1.00 CortexOM is the baseline. $10.00 is the dream
What about the depreciation recapture when you sell? shell corps / trusts, foundations and such methods are probably better
I don’t think people understand tax loss harvesting and how the government literally pays you to invest even when you lose money.
Selling a small bit of Bitcoin this year means that they could sell Bitcoin at a profit next year to pay dividends if they wanted to, and pay zero taxes on it. Or, even better yet, they could hold on to the Bitcoin that they bought at lower prices this year, and when they are sitting on unrealized gains next year they can actually get a paycheck from the government to buy more Bitcoin next year too.
….
As a beginner in trading, keep these five principles firmly in mind:
Think long-term. Real success in trading is built over time, not overnight.
Be prepared to take calculated risks. Every investment carries risk, so learn to manage it wisely. Be disciplined with your money. If your spending is not helping you grow or generate returns, reconsider it
Never assume you know everything. Stay humble, keep learning, ask questions, and seek guidance from a qualified financial advisor whenever possible.
This is the truth. I’ve been making so many emotional mistakes lately. How did you finally get to a point where you stayed disciplined?
I know nothing about day trading, I am trying to get into it but don’t know where to start from.
I had to learn the hard way for sure! 😊 Honestly, everything got better once I stopped winging it and just stayed focused. Having someone who actually knows what they’re doing to watch my back changed the game.
To be honest, I need a lot of assistance learning to trade. I get really depressed when I see how low my portfolio is.
Grateful 🙏🏻As I retire the year earning $66k
biweekly, this video brings back the memories of 2024. You have inspired me in so many ways!!! I can now support God’s work and the church.
I’m 25. and want to be a millionaire by 30. I make 100k in Boston. I’m savina 75% and puttina 5% in a 401k Roth plan (at 14k currently). I have 40k in my brokerage account in energy and tech stocks, and 60k in savings. What should I do with my money?
Elizabeth Mende Brown. She has been an incredible mentor. Getting a financial advisor at a brokerage will do, because it means professional investment management, trading services, weekly reports, and no extra fees. Not for beginners alone — but it saves you from YouTubers’ nonsense and daily hopium.
Greetings from Germany, staying in Austria🇦🇹 I’m delighted to be among the winners of Elizabeth with a starting capital of €5,000 and to be able to celebrate winning €68,000 in just 5 months.
Unfortunately, not all of us were financially literate early. I was 38 when I finally educated myself and started taking steps. I went from $112,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $800,000 net worth. I know that doesn’t SOUND like a lot, but I’m incredibly proud of it. Now I’m fast-tracking my wealth building (investing $120,000 annually) and don’t owe a dime to anyone. It’s a good feeling
Some of us aren’t lucky either
thank you for being you, truly!
Understanding personal finances and investing can lead to greater financial independence. I am a 33-year-old preschool teacher, and I started saving and investing in crypto and ETFs. Since then, I have paid off my $50k mortage, built my savings to over $10k, and eliminated all my debt. Investing in the market has helped me grow my wealth and work toward long-term financial security.
you are right. The best trade of my life last week. An investment of $6,000 hit 20,000 because of these types of breakdown happeneds. I’m still shaking when I look at the P&L I’m done paying for debits.
I have forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time, or is it a continuous process? Thanks…
I have followed Mendoza way back since 4 years now and I really appreciate how she breaks down investing in a way that’s easy to understand. No hype, no pressure just practical advice that encourages smarter, long-term thinking.
I’m genuinely surprised to see mentioned here-she’s an incredible person who has brought so much positivity and inspiration into my life.
Is there anywhere I can get across to this woman for a startup?