All Forum Posts by: Julio Gonzalez

That's a great goal, Sherrie! Welcome aboard and best of luck investing!

-Julio

Hi David, welcome to the community! There is a great group of members on here to connect with.

-Julio

In my previous post, I talked about the different property classifications to help separate real property from personal property. Identifying your personal property helps you determine the portion of your building that can be expensed immediately under the first year 100% bonus depreciation deduction. I thought it might be helpful to walk through an example.

An investor buys a building for $5,000,000. The value of the land that the building is on is $400,000. Since land does not depreciate, the amount that is subject to depreciation is $4,600,000. Traditionally, the investor would expense the $4,600,000 straight-lined over 39 years. The investor decides to get a cost segregation study to determine the amount of property that is classified as tangible personal property. The results of the study show that $1,000,000 is related to tangible assets, including parking, specialty electrical, finishes, flooring, interior landscaping, etc.

Under the bonus depreciation rules, the investor is able to expense the $1,000,000 of tangible assets immediately. The results of the cost segregation study are considered significant. The study's report also allows the investor to retire and expense structural assets as they are exhausted, which can also lower capital gains when selling the property.

Are you familiar with bonus depreciation?

Welcome to BiggerPockets, Nathan! You found the right place for information!

-Julio

Welcome aboard, Cecilia! Best of luck investing!

-Julio

Welcome to BiggerPockets, Josie! Thank you so much for introducing yourself to the community!

Welcome to BiggerPockets, Aleksandra! There is a great group of members on here to connect with.

-Julio

Hi Andrew, welcome to the community! There is a great group of members on here to connect with.

-Julio

That's a great goal, Evelio! Welcome aboard and best of luck investing!

Welcome to BiggerPockets, Christian! You found the right place for information! 

-Julio