I’m looking for a CPA for the first time, here in my new home, San Antonio TX.
This year I put my SFH, and a Duplex into service. It's my first year as a landlord. I also received a Bonus this year, and as active duty military, our bonuses are rare (every 6th year for me). So I have an unusually high income this year, that won't continue into next year.
I'm hoping there's a fancy tax method to reduce my taxable income based on putting the SFH (purchased in 2014) into service, and the Duplex (built and purchased in 2019) into service.
Thank you everyone!
I noticed your post but didn't comment since I am not anywhere near Texas but I wanted to at least offer my 2 cents. Nothing fancy, but if you put things into service in 2019 you can start depreciating those assets. Where things are most advantageous are when you break things out further than just simply putting a building and land on your depreciation schedule. Non-commercial buildings are depreciated over 27.5 years (very slow) and land is not depreciated at all (zero benefit other than offsetting eventual sales proceeds when you decide to sell). If you attribute some of the purchase price to things like furniture, carpet, appliances and other assets that fall in the shorter useful lives you can get the benefit much faster (and sometimes immediately!). Having said that, if your income is above a certain amount, you will not be able to offset the losses against the income you get from the military. You can deduct up to $25k if your other income is less than $100k. Once you reach $150k, you will need to carry any losses forward.
Hope this helps,