All Forum Posts by: Julio Gonzalez
Julio Gonzalez has started 248 posts and replied 4565 times.
Post: I wish I known about BiggerPockets earlier it would’ve put me in a much better place.
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Glad to have you here, Ofir. Your resilience and experience will be a huge asset on your comeback. Looking forward to seeing what you build next!
Post: Ale Ayestaran intro as BiggerPockets new CEO
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Welcome to the community, Ale! Love your story, I'm excited to see how you help take BP to the next level.
-Julio
Post: Depreciation Recapture Strategies for 2025
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Depreciation recapture can be a gut-punch when selling an investment property. You’ve taken all of those beneficial deductions, but the IRS wants a chunk of that back when you exit.
Fortunately, there are some legal strategies to avoid or reduce depreciation recapture. Some of these strategies include:
1031 Exchange
A 1031 exchange is a classic strategy to defer capital gains and depreciation recapture by rolling properties into a like-kind property. You could potentially kick the tax can down the road indefinitely if you keep doing exchanges or a step-up in basis later.
Just keep in mind that there are deadlines that must be met and other requirements. Working with a qualified intermediary is essential.
Purchase A New Property and Do a Cost Seg Study
Another potential option is to purchase an additional investment property and do a cost segregation study to offset the gains from the sale through bonus depreciation (if you qualify).
Reinvest in Opportunity Zones
If you invest your capital gains (including recapture) into a Qualified Opportunity Fund within 180 days, you may be able to defer the taxes until 2026. You could potentially eliminate those taxes if you hold onto the investment for long enough.
Convert the Property to Your Primary Residence
This strategy takes time and planning, but it may be an option if you know you’re going to sell the property in the next few years. If you convert the property to your primary residence for at least two out of the five years before selling, you might qualify for the Section 121 gain exclusion. You will still owe the recapture, but this strategy could reduce your overall gain significantly.
These are just a few strategies you can use. I’d love to know what’s worked best for you in minimizing depreciation recapture. Any hard lessons you’ve learned?
Post: CPA says no to Depreciation
#4 New Member Introductions ContributorPosted - Specialist
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You might consider asking whether a cost segregation study would be appropriate for this property or if there are any compliance or audit concerns tied to depreciation that influenced their recommendation. A second opinion from another CPA who specializes in real estate could also provide helpful perspective.
Post: Strategies to Minimize Real Estate Investment Income Taxes
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Quote from @Matthew Schumacher:
Absolutely love this post — solid overview of strategies that can really move the needle when you’re being intentional about growing your real estate portfolio and minimizing taxes.
Here are a few other approaches we've seen clients lean into, or that we're actively exploring:
Bonus Depreciation + Cost Segregation
When used together, these two can create some serious tax savings. We’ve seen people slash their taxable income in year one by accelerating depreciation. It’s especially useful to look at now while bonus depreciation is still phasing down.
Using Passive Losses to Offset Income
If you can qualify as a real estate professional, that opens the door to using passive losses (like the ones from depreciation) to offset regular income. This can be a major tax break for high-income earners who are also active in their portfolios.
Smart Entity Structuring
Setting up the right legal structure can do more than protect your assets — it can also help with tax planning. For some investors, holding properties in LLCs and running operations through an S-corp helps with income splitting, deductions, and even health benefits. Definitely something to review with a CPA who knows real estate.
Capital Recycling with HELOCs & Infinite Banking
Instead of letting equity sit idle, some folks are using HELOCs or cash value life insurance policies to move capital more efficiently between deals. It’s all about maximizing velocity — using the same dollar in multiple places over time.
Charitable Remainder Trusts (CRTs)
If you’re looking at a big exit, a CRT might be worth looking into. It allows you to sell appreciated assets without paying capital gains upfront, generate ongoing income, and eventually donate to a cause you care about. Not for everyone — but it’s a powerful tool in the right hands.
Post: Finally ready to take the REI plunge!
#4 New Member Introductions ContributorPosted - Specialist
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Great to have you here, Nick! That first deal is the toughest. Don’t be afraid to flex a bit on the 1% rule if long-term fundamentals are strong.
-Julio
Post: New investor starting out. Learning, exploring, listening
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Hi Oleksandr, welcome to the community!
Post: Wanting to start my real estate investment journey.
#4 New Member Introductions ContributorPosted - Specialist
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Thank you both for your service! Starting from scratch is how all great investors begin. You're already ahead by being intentional and open to learning.
Welcome aboard and best of luck investing!
-Julio
Post: Hi everyone, I’m Jeb Durgin – Private Lender & Adrenaline Junkie
#4 New Member Introductions ContributorPosted - Specialist
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Glad to have someone here who really understands both the numbers and the hustle behind investing.
Looking forward to learning more about how you approach funding and deals.
-Julio
Post: Hello Everyone! Glad to be here and excited to learn more about REI!
#4 New Member Introductions ContributorPosted - Specialist
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Welcome to BiggerPockets, Jimmy! This is a great place to learn and to connect with people so take advantage of all the great resources.
-Julio