No offence, but you’re tax on you’re income period. You are misdirecting people with how you’re stating you get tax.

You get tax on your GROSS income, not your net income. You get tax breaks on things that cost you money and produces your net income.

While owning land is a great idea, don’t mess with the IRS. Or they will mess you up.

Maybe I didn’t explain myself properly. I’m talking about the idea of tax deductions, where the money you pay for business expenses is not taxed. For example, if you own a bakery, the cost of the rent of the shop, flour, ovens, etc. are not taxed.

So if you had gross revenue of $10,000 per year, and your rent was $2,000 and the cost of the materials and other employee costs were $5,000 for the year, you’d be left with a profit of $3,000 which you are taxed on.

If you didn’t own a business and instead had a job for a living and you made $10,000 per year, you would be taxed on $10,000 because living expenses like gas, food and going out generally aren’t tax deductible.