Does anyone here use bonus depreciation on their rentals properties to offset w2 income? I am aware of the standard 27.5 year depreciation, and the cost segregation strategy, but recently I discovered the bonus depreciation. For example, if you buy a rental property for $1M, you are allowed to offset 80% of the building value x 30%. So that’s $1M x 80% x 30% = $240k from your w2 income taxes! I believe this is being slowly phased out, so if you purchase a property in 2024 - building value x 60% x 30% 2025 - building value x 40% x 30% Sounds a bit too good to be true. What am I missing? #cpa #irs #tax #facebook #google #amazon #nvidia
You must be a qualified as REPS. With W2 employment it’s highly impossible to prove your REPS status. If your spouse can qualify for that status you can do what you are planning. DM me if you need more info
can i DM you too? my wife has free time on her hands and might be able to qualify
Sure