Originally Posted by LoSconosciuto";p=&quot

I wasn't suggesting that personal items could be depreciated... though you'd be surprised what still falls within the realm of "business related". Joe and Jane Schmoe may get a break for their kids, but do they get a big screen plasma TV set (for the office, of course) partially paid for by Uncle Sam? But accelerated depreciation is the reason that I was able to form so many real estate partnerships with dentists and doctors in the 80's. Most of the ones I did for them barely kicked out any positive cashflow, but it was depreciation and interest expenses they were after anyway. It was great for me and I took advantage of it... so I'm not complaining. But was it "real" or needed? No! They've since done away with that method for real estate, but 1031's are still there for those that know how to play the game. Unless you do an Angelina Jolie and adopt about half of some nation's kids, even a bad 1031 Exchange will beat the heck out of whatever the average wage earning parent gets.

They've cracked down on them a bit, but tax shelters are every bit as prevalent now as they ever were.

Something else I thought about as I was logging out last time... this notion that a certain income level makes you "rich". Where did that concept come from? For individuals, net income tells me nothing because it doesn't normally include day-to-day expenses. Net worth tells me a lot more, though if a large portion of it is illiquid (real estate as opposed to stocks, bonds and cash), you still may be rather "poor" if a rough spot hits you at the wrong time.