All Forum Posts by: Jon Abbott

Bonnie, I appreciate your perspective and sharing your concerns. There is certainly some wisdom and safety in what you suggest. However, I don't want to pay another $50k of taxes in 2022. Even if I try and fail, I think it's worth the effort. The most important thing for me right now is to find a tax professional to inform my actions to make sure I don't screw this up by failing to meet some requirement that I didn't understand. Within the hour, I just now accepted an offer on a home which my wife and I plan to use as a STR. Shout out to the Short Term Shop, who I found through Avery and Jessica Puma (realtor) who helped educate me about the Orlando market, set me up with a lender (@AndyYoeger), and gave me some great options for properties. Hopefully, this works out. If not, it should be at least a decent option for cash flow. Potentially, it will help me save $40k+ in taxes in 2022. From my perspective, at 52 year old, it makes sense to coninue to invest in STR properties for the next few years until I retire, making use of the cost segregation/bonus appreciation option (even if scaled down by 20% each year after 2022). until I retire and my tax bracket will then tank to something lower and at that point I am not concerned about my lower-income tax bracket. At least that's where my brain is at right now. I need to hire a tax expert though to make sure I do this right.

Great advice. Thanks, Mike. May I contact you personally?

Thank you, Dom. I'll check it out.

Thanks, Adam. That really helps. Your answer is VERY helpful to understand bonus depreciation. Admittedly, I am a novice in my understanding of these terms. What what I understand, since I don't qualify as a real estate professional (I could qualify based on my hours, but can't due to my W-2 job), it's important for me to have STR status in order for the bonus depreciation to count against my W-2 income--that's the huge motivation for me at the moment. I am SO thankful for podcast 689. As I race against the clock for 2022 taxes, it sounds like the easier task will be to have the property listed by Dec 31. The more difficult task will be to secure two stays so that I can include all of the bonus depreciation against my W-2. Thanks again for sharing your knowledge.

Thanks, Dom.  My primary motivation is to offset W-2 income, so yes, I would want to do cost segregation. My wife and I pay about $50k in taxes, so I am hoping to reinvest some of that rather than pay Uncle Sam.  

After watching podcast 689 (Pay No Taxes in 2022), I am motivated to see if I can purchase a STR prior to the end of 2022. Is this feasible? Is there a minimum number of days that the STR would need to be available or rented prior to January 1? Would I (or my spouse need to put in 100 hours before the end of the year in order to qualify for the bonus appreciation "loophole"? Thanks so much.

Thank you for your replies. I appreciate it.

I live in Washington State and am investing in Dayton, OH, because I am seeking high cash flow property for when I retire in 5-10 years. I found a Facebook Forum with wholesale deals that are 30% below retail price. I found a specific deal that I want to move forward on. Any suggestions on key processes to protect me in signing a contract, or any pitfalls to avoid? I am thinking of finding a real estate attorney in Dayton to look over a contract and facilitate the signing of the contract on the wholesaler's end. Currently, I own two single-family rental homes in Dayton, but I have never purchased through a wholesaler. Thank you for your help.

I am just getting into rentals. I had an incomplete understanding of 1031s. My property doesn’t qualify. I purchased the property at auction and it turned out to be a lot bigger project than I anticipated. I have not rented it yet. I live out of state. Thankfully, the market went up significantly. Again thank you very much!

Thanks. That’s very helpful. You helped me understand that a 1031 doesn’t make sense in this case.