Can we take Bonus depreciation in a different year?

Question

Hi all, I purchased a property in 2023.

But in the year 2024, I can qualify for REP status. Can I claim bonus depreciation for the property purchased in 2023 against W2 income in 2024?

Ash Hegde · Answer

Agree that you should ask a CPA.

I think the answer is no, that you would have to take it in 2023, which would lock your losses in as "passive" and carried forward into 2024. What I am unsure about is if REP status in 2024 will allow you to take that 2023 loss that was carried forward.

Julio Gonzalez · Answer

@Vikranth Biradar Do you have a CPA that specializes in real estate taxation that you're working with? This would be a great question to ask them as it's specific to you and your tax situation.

Bill Hampton · Answer

@Vikranth Biradar

I recommend finding a tax strategist that specializes in real estate taxation, REPS and cost segregation. You may want to consider working with your tax strategist remotely to expand your options.I would also recommend looking for a tax strategist willing to work with you throughout the year, not just when preparing your tax return. You want an accountant who can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.Good luck in your search.

Bjorn Ahlblad · Answer

It would be worth your while to have an accountant who knows you and your income streams etc to answer your questions like this. People in the internet could unintentionally steer you wrong and cost you money. All the best!