We have been very fortunate, also hard working and frugal . Now A and J all had several promotions in the past a few years, and the rental properties are paid off. The tax bills are getting pretty high.
A: making $420K between salary, bonus and his company stocks. J: making $240K between salary, bonus and her company stocks. $280K from rentals. $80K from stock dividends.
The stock portfolio is about $6M including two 401Ks. The real estate is $7M including home, and 3 rental SFH/apartment complexes. $600K cash.
The 401K's are maxed out; all the properties are paid off.
We are in California, USA. Since this is a high housing price location(~$1.5M for 1300sqft home renting for $4000), newly acquired rentals typically have near zero or even negative cash flow. We are thinking of buying more rental properties to offset rental income. Are there some other ways to invest and reduce tax?