All Forum Posts by: Tom Gorrell

After further reading I think I mixed up two different options. So I am asking about using bonus depreciation not the 179 provision. 

Hypothetically:

After expenses our passive profit was $60k in 2022

My wife started working on our rentals in august - ( not enough to become a REPS) the same month we bought a car for 100k that she used for business 60 percent of the time. 

We have 50 k of carryover depreciation in our current rentals. 

Do we / can we use to 179 provision to bonus depreciate the vehicle to cancel out the 60k of income?

Or is using some of the banked property depreciation a better / needed move? 

Thanks to Doug for the recommendation and to Cara for reaching out too

Thank you. I will reach out.

We have a nice 4 bd/3ba detached home that we will be putting up for rent. I am looking for a property manager that can help us decide if we should go long term or short term (we could leave the furniture). 

Please let me know if you have any recommendations 

@Lane Kawaoka- I am considering investing in a value add syndication as a limited partner. I see that you have been involved in this space for a while. So this question goes to Lane, but is open for anyone- 

What is the end game? I understand that syndication groups would like you to 1031 exchange to their next investment when they sell, but what if I want to cash out? Will I get killed by the depreciation recapture taxes?

Great question!

Would this individual be able to sell his or her rental property - then take the 600k in profit and invest that money into a value add apartment syndication in the same year....Generating as much or more depreciation loss to wipe out any capital gains?

I guess it’s a matter of perspective- world wide even those of us at the bottom of the economic spectrum are blessed. But yes- many people are struggling in Anaheim. It’s all they can do pay the rent in a crime ridden Mobil home park - they have never asked for assistance and might agree to it if I present some options- but I am trying to find a solution because this family is amazing. 

Thank you Kyle. I am right with you on developing a plan. I can help and I am willing to extend a hand up because of the work ethic and quality of their character. But I can do it forever, so there has to be a plan bring them up to market value or have an exit plan that doesn't put them in an even tougher situation a year from now. A little more about the situation - the Son is about two years away from graduation at Cal State Fullerton and the daughter is just graduating high school. 

Thank you Joe