That assumes that the landlord lives in a different tax jurisdiction. Possible, certainly, but not inevitable.

The landlord still pays property taxes on his investment properties. It’s his income tax that is offset.

well there's the benefit of having higher educated and presumably higher paid tenants.

I actually don't understand why the laws are written that way, apart from the political goal of causing W2 workers ("suckers") to bear a disproportionate tax burden. A W2 worker incurs expenses that are necessary to earn their income, including food, transportation, clothing, and healthcare. If they were able to account for these necessary expenses as a business does, the expenses would be directly deducted from income.

And that's not even getting into the S-corp self-employment-tax dodge.

The link you provide points out the SALT deduction cap of $10k. With the standard deduction up to $12k+ now, if your only itemized deduction is your property and state income taxes, itemizing isn't going to be worth it.

We were so close to losing the cap on SALT deductions with the Inflation Reduction Act; I'm super bummed it didn't make it into the final bill.