Tax deduction vs. tax credit: not the same thing. Most people get this wrong—so let’s break it down. 🧾 A deduction reduces your taxable income. 💰 A credit reduces your actual tax owed—dollar for dollar. Example: Let’s say you’re in the 40% tax bracket and get a $100,000 tax deduction from a cost segregation study on a rental property. That saves you about $40,000 in taxes—not $100K. Now let’s say you get a $10,000 tax credit. That comes straight off your tax bill—$10,000 saved, dollar for doll
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