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Updated over 1 year ago on . Most recent reply
100% Bonus Depreciation
Hello BP,
I'm just learning about 100% bonus depreciation and how Trump pays no taxes… who qualifies for that? Does the property need to have an LLC in place? Does it matter that I purchased with an FHA loan? Do you have to be a "real estate professional" to qualify?
Any advice would help! Thank you
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#4 New Member Introductions Contributor
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- West Palm Beach, FL
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#4 New Member Introductions Contributor
- Specialist
- West Palm Beach, FL
@Christopher Morris His scenario is much more complicated than many recognize. And some of it is due to losses being carried forward for years that he is now able to use to offset against gains. His portfolio is also not 100% real estate, so it's due to a multitude of factors. Just want to help set expectations!
You do not need an LLC to qualify for 100% bonus depreciation. If you have an FHA loan are you house hacking or is the property a personal residence? Only investment properties (or the non-residential portion if you are house hacking) is eligible for a cost segregation study. You do not need to have REPS status to qualify, but it is typically helpful.
Here's an FAQ on cost segregation studies that you may find helpful. Please reach out if you have any questions.
https://www.biggerpockets.com/forums/51/topics/1113749-cost-...