All Forum Posts by: Justin Ossola

I have a strong feeling that bonus depreciation rates will rise back to 100% in 2024. While that’s promising, it doesn’t address the challenge posed by currently high interest rates. My strategy in the past had typically involved minimal equity investment in properties to maintain a positive or net zero cash flow (as long as I wasn't losing money each month), thereby allowing me to claim substantial depreciation losses with little initial cash outlay. Given these conditions, I'm looking for advice or tools that could help analyze whether this approach remains viable with the high borrowing costs. 

Can anyone recommend resources or calculators that assist in evaluating the impact of these factors on investment decisions? Are there other creative tax strategies that involve real estate that I should be looking into?

I've previously found cost segregation studies to be highly beneficial, particularly as a strategy to offset taxable income from both my full-time employment and rental properties. These studies have enabled me to take advantage of accelerated depreciation, significantly reducing my tax liability and improving my financial position. However, given the current economic climate, where interest rates are notably high, I'm concerned about the feasibility of acquiring new property in 2024 that would not only be financially viable in terms of cash flow but also suitable for leveraging accelerated depreciation benefits. My apprehension stems from the possibility that the elevated borrowing costs may outweigh the potential rental income and tax advantages, making it challenging to replicate the financial benefits I've enjoyed in the past. 

I'm seeking insights on whether pursuing property investment under these conditions would still allow me to utilize accelerated depreciation effectively or if there are alternative strategies I should consider to maintain my financial strategy amidst rising interest rates.