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So if you don't understand what's happening here the person is using leverage to buy a piece of property that is bigger than their income so that the percentage of the property that you can depreciate the first year is basically equal to your income which makes your income equal basically zero or as he says $11,000.

Now this can be done with any size income if you can find a small enough real estate investment you don't have to be making $200,000 a year you could do this with 40,000 a year if you could put $30,000 down on something and depreciate $30,000 a year against that income. You may also be able to do this by investing in real estate limited partnerships that are highly leveraged but I don't know if that's true so check that out first. Sometimes you can invest in an reit and the depreciation carries through but I'm not sure about that again so double check that. They're always changing these real estate tax depreciation laws but real estate depreciation is always one of the best things in tax code. It's why so many people have gotten Rich from Real estate like Donald Trump and others. You can sort of endlessly defer your income into depreciation until you just have massive numbers of properties kicking off so much cash that you can start paying income tax on that much larger cash flow and you just don't even care anymore.