Availing Cost seg accelerated depreciation as an 'active participant'
I'm planning to do a cost seg and use accelerated depreciation for properties bought in 2022. My plan is to use this to offset non-passive income. I know I should qualify as a REP to do this, but my CPA is saying that the first year of property purchase is considered as an 'active participant' and don't have to be a REP. I'm not sure if this accurate.
Would appreciate your insights...thanks a bunch.
Most Popular Reply
Whether or not you qualify as REP is a test of the full set of facts and circumstances.
There is not "rule" about first year being considered active participant. That's just..... either made up or misunderstood.
Perhaps a real estate focused CPA who know these rules inside and out would be a better person to engage with.