Tax thread tells HNIs to favor real estate
A tax adviser on X urged high‑net‑worth individuals to prioritize post‑tax income — for example, tax‑deductible real estate — because as much as 45% of earnings can be lost to taxes under some scenarios. (The post recommended focusing on tax‑efficient holdings rather than just boosting gross income and cited a 45% IRS 'leakage' figure.) (x.com)
A tax adviser’s X thread told high-net-worth investors to chase after-tax income, not just bigger paychecks, and pointed to rental real estate as one way to cut taxable income. (x.com) The math behind the pitch starts with federal rates. For tax year 2026, the top ordinary income tax rate is 37% for single filers above $640,600 and married couples filing jointly above $768,700. (irs.gov) Investment income can add another layer. The Internal Revenue Service says high earners can owe a 3.8% Net Investment Income Tax on interest, dividends, capital gains, and rental income above $200,000 for single filers or $250,000 for married couples filing jointly. (irs.gov) That is how advisers get to “leakage” figures in the 40%-plus range: a top-bracket taxpayer can face 37% on wages, while long-term gains can still reach 20% plus the 3.8% surtax, and state taxes can push the combined bite higher. (irs.gov 1) (irs.gov 2) Real estate gets singled out because the tax code lets landlords offset rental income with expenses. The Internal Revenue Service says rental owners can deduct expenses tied to the property, and Publication 527 covers depreciation, interest expense, and other write-offs. (irs.gov 1) (irs.gov 2) Publication 527 also says net investment income may include rental income from passive activities, which means real estate is not automatically tax-free. The benefit depends on facts like financing, depreciation, and whether losses are limited by passive-activity rules. (irs.gov) The Internal Revenue Service has also warned taxpayers not to take social-media tax advice at face value. The agency says bad tax advice online can lead people to claim deductions or credits they are not eligible for, which can trigger audits, penalties, or worse. (irs.gov) The thread’s core argument is a familiar one in wealth planning: a dollar earned is not the same as a dollar kept. The Internal Revenue Service’s own 2026 brackets, rental-property rules, and investment surtax thresholds show why tax treatment can change the value of the same gross income by thousands of dollars. (irs.gov 1) (irs.gov 2)
