Interpreted Prediction
Real estate investors can legally reduce their taxable income by utilizing the depreciation deduction. For example, with $15,800 in income and a $7,200 depreciation write-off, taxable income is reduced to $8,600.
AI Evaluation Notes
The prediction accurately describes the depreciation deduction for real estate investors, where taxable income is reduced by a depreciation write-off. The example provided is a valid illustration of how this deduction works.