All Forum Posts by: David Stein

Hi fellow RE investors, 

Quick question, I have been reading on QBI and I know that passive rental income qualify for the 20% deduction from QBI. However, when I sell the rental property, does depreciation recapture qualify for QBI deduction as well? 

If not, does this mean I should depreciate less on my rental property given that there's preferential treatment for taking the income now? (Suppose my marginal tax rate is 24%)  

I have done an extensive remodel and addition to my primary residence, and plan to convert it to a rental property down the road (in a few months to a year). I'm in the process of compiling and allocating all costs associated with the improvement. I know that certain items (e.g. fridge, washer) can be deprecated 100% and not subject to depreciation recapture down the line since the resale value -> 0. Is there any other items that can: 
1. Be depreciated 100% and not subject to depreciation recapture down the road
2. Be counted as an expense 

Any advice is appreciated. 

@Caleb Heimsoth Wow. Could you send me your CPA's info? Is s/he familiar with California investors? I'm in need of a good CPA as well. 

@Henry LiChi Hi Henry, were you able to find a good CPA in the end? I too am in search of a CPA. Any recommendation is appreciated!c

@Joel O'Leary , @Karen Young Would you mind sharing your CPA's info to me as well? In the same boat -- looking for a good CPA who knows about real estate and does tax planning.