All Forum Posts by: Thomas Q.

@David David (sorry not sure I'm getting this @ thing to work on my phone)

Thanks for the reply! Goal is buy and hold, potentially 1031 in future to delay recapture. Maximizing depreciation now gives me the opportunity to drastically lower my AGI given my wife's status as a real estate professional, which grants the ability to deduct against my future 230k yearly attending income. This would have me paying less taxes, paying less in income based student loan repayments (which ideally would be forgiven in 5 years after working an attending. A whole other discussion. Forgoing more lucrative private practice in order to be public service. I know, can't rely on pslf/bootstrap yourself millennial/etc), and having more cash now to invest more aggressively.

You are correct that technically rehab costs could likely also count for those purposes, but currently, rehab funds are limited and would need to be available for downpayments/reserves, and I honestly don't have time with my schedule for either sweat equity or coordinating contractors. Wife obviously would be coordinating, but again, dollar for dollar I feel like we'd get more bang for our buck in terms of lowering AGI via cost seg (whether it is higher cost property or downpayment towards next). Could you imagine if over the next few years, I could front load depreciation and lower my AGI by over 100K per year, potentially more?

You're also right that the deals do need to make sense. Not an excuse to expose myself unnecessarily. And lol, while I'd love to donate, my net worth is despicable right now haha.

I'll definitely look into that sec199 depreciation, thanks for the tip

Hi everyone, lurker for past year 1-2 years, finally posting.

Background, physician in the middle of fellowship, expect to make around 230-240k income as an attending. Knee deep in student loan debt more than most others (other physicians included), will make traditional financing extraordinarily difficult, but that's a story for another day.

I am in the unique position where my wife is a realtor. We are also currently house hacking our SFH, renting out rooms, claiming everything on schedule E as we should, getting to deduct our mortgage interest and depreciate our house. Feels good bro.

In any case, my wife manages our tenants, and as we continue to expand, we plan to continue to maintain hourly records/documentation to support her classification as a Real Estate Investor. As we file taxes jointly, this will provide us with the ability to claim all rental activities/losses as active, with the potential to deduct against my W-2 income.

Trying to plan ahead for my next move. Many of you rightly may be thinking "just pay your student loans you fool" for a multitude of reasons including guaranteed return, easier financing, overextended, cash flow issues, already leveraged, etc. I am on an income based repayment plan for student loans, and at this point, I would heavily prefer to minimize payments via minimization of AGI and focus on investing. Rather than sheltering via maximizing 403b, 457, wife's solo 401k, trad IRAs, HSAs, etc, I'd much prefer to focus on personally managed real estate investment properties.

In any case, I see myself as heavily inventivized to maximize depreciation via cost segregration in an effort to shelter my income, and maintain more capital towards expansion. I feel that the ability to maximize depreciation will be a strongly weighted factor when choosing my next investment property, along with the typical numerical factors.

Tldr; fluff above (hope I didn't make too many people cringe), just read stuff below

My question is primarily, what type of property do you see as being able to maximize cost seg?

Considerations i appreciate so far:

- Obviously the most expensive, the more ability to absorb the cost of performing the study, and the more building value to depreciate in general

- Would you focus more on multifam but in class B-C? Smaller class A-B SFH with granite countertops and other items on a faster schedule? Condo with zero land to count against the depreciation?