All Forum Posts by: John Malone

@Asim G. Yes. Passive income and passive losses will net.

@Kevin Kim keep in mind depreciation is mandatory, not optional.

The law is “allowed or allowable”. If you don’t take it you’ll still get hit with recapture

@Felix Piper do you own the company (or a 5% stake)?

@Lisa Marie without getting into the nuances, accelerated depreciation is extremely beneficial for many, but not all. Its never a one sized fits all of course.

Generally, a deduction today is more powerful than a deduction tomorrow with time value money and rising rates over time.

It is rare to run into a HNW entrepreneur who opts out (other than some delayed income situations where is makes sense).

However, you accountant should be building you the model with/without accelerated. It doesn’t take long with tax software but if you can save current tax dollars today, many think its worth it (not considering the strategies to avoid recapture as well).

@John Tan potentially. Remember a true STR under the tax rules isn't considered a real property trade or business. Tax court has thrown out REPS on this issue years b4 the so called "loophole". However, there is debate over this but generally we follow prescedent from the Courts.

@Michael Plaks usually passive activity credits too I believe!

@Megan Stone re education - dont bank on it. Right or wrong, IRS and Tax Court almost always disallow education hours

@Federico Maranges try Horizon Trust, Greg Herlean

@Stephen Savage you cannot rent from yourself, no. Well you CAN but that’s a circular self rental.

A night = a day yes

@Todd Kozak yes they net on form 8582