Tax Strategies / Benefits for landlords and flippers

[Nikolas Ferreira]

Hello Everyone !! 

First of all thanks for taking time to read and hopefully reply!

Yes i know i need to speak to a CPA or a tax professional and the whole nine yards (I know and I will) with that said I'm looking for information/books that can be helpful so that i can be better prepared for when i do speak with the CPA. 

I don't want to walk in there with a deer in the headlight look. So send me your suggestions on the books or articles that can help me better understand how to fully use all my "benefits" 

Thanks,
Nick 

[Jim Kennedy]

@Nikolas Ferreira Yes, depreciation lowers the basis and raises the gain, but its not an even trade. I mean its not 1)save money on the annual expensing, and 2)then get smacked at the sale. The savings annually on depreciation are at my ordinary income's incremental tax rate, (28%/31%, etc) while the gain that is triggered at the sale is at capital gains rate, taxed for me at 15%, so I end up ahead. Besides, in tax planning its usually advantageous to accelerate expenses and plan for alter. 

Also, dont think about not taking it to avoid a lower basis because under the so-called "allowed or allowable" your gain at sale must be computed with the depreciation that was allowed OR WOULD'VE BEEN allowed. Depreciation skippers are oh for two - they lost the write off in the annual filing, and it costs them on the back end come sale time!

Jim Kennedy, CPA