Why do so many high-income investors turn to multifamily real estate for both passive income and tax advantages? In this episode of Passive by Design, Victoria sits down with Grovia Capital CFO Scott Jacobson to break down one of the most powerful — and often misunderstood — benefits of multifamily investing: the tax advantages. Scott is a CPA and longtime real estate investor who has personally owned and managed dozens of rental properties and invested in many syndications as both a limited partner and general partner. Together, we discuss how depreciation, cost segregation, passive losses, and even 1031 exchanges can significantly improve the after-tax return of an investment. For example, it’s not uncommon for an investor who places $100,000 into a multifamily syndication to receive a first-year K-1 showing $40,000–$50,000 in depreciation losses — while still receiving cash flow from the investment. That doesn’t mean they lost money. It means real estate plays by a very different set of tax rules. In this episode, we cover: How depreciation works in multifamily investing Why cost segregation creates larger first-year tax benefits The difference between passive and non-passive income How K-1 losses can help offset future gains When 1031 exchanges may apply in syndications Why after-tax returns matter more than headline returns As always, we encourage investors to consult with their own tax advisor to understand how these strategies apply to their personal financial situation.