bonus depreciation tax write off

[Lotta Rozenson]

Do i have to actively manage a property to use a bonus depreciation tax write off? 

[Sean O'Keefe]

@Lotta Rozenson For real estate investors, bonus depreciation is available on assets with a useful life (e.g. period asset takes to wear out) of 20 years or less. 

The amount of bonus depreciation you can take may change each year - 2023 the amount is 80% (but there is legislation that may change this to 100%).

Actively managing the property doesn't change the IRS rules on whether or not an asset is eligible for bonus depreciation. Participation in actively managing the property, in addition to other factors, changes whether or not losses from a rental (losses that may include bonus depreciation) can be used to offset non-passive income (W-2, 1099, etc). 

.

.

.

*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.