Reasonable depreciation write-offs are reasonable. Your own farm. A few housing units in a poor economy. etc.
But this is at a level that’s taking advantage of a system designed to prevent poverty.
It’s the scope that makes it sensational, not that depreciation laws help middle class during slow real estate times, which is normal.
I don’t see Kushner as a “real estate success story”.
Kushner does not assist the economy.
I’m not knocking people who don’t pay taxes from rental income as they are providing a service (such as housing in poor neighborhoods that otherwise might have none).
It’s a carrot-on-a-stick to encourage housing real estate investing.
That’s how we do things. It’s one of the four major ethical ways to get rich in the USA. (stocks, business ownership, rental income and buy/sell businesses)
But getting rich from depreciation, holding onto unused, vacant properties on a massive scale _is_ a form of legalized fraud to me and I’ve thought so for decades.
So this is my own personal beef here. One or two or ten? Ok, but the balance of a portfolio should be (ethically) towards local economic growth such as taking that depreciation and putting it back into the economy, not into offshore untaxable accounts.
For me, this is a part of a much longer Kushner story. People who make their livings ethically should be rightfully angry at Kushner for ABUSING this system as it’s people like him that spoil it for everyone.
Don’t shoot the messenger. The media is not overblowing it because this is about Kushner, the already unethical guy, not about regular business people.
Get mad at Kushner here, not media. Fraud spoils it for all.