All Forum Posts by: Yonah Weiss

You guys are crushing it! Congrats @Zach Haptonstall!

Awesome to see this one come full circle @Zach Haptonstall! Many more!

Christopher, your client is correct. There are actually significant differences between a STR and a long term rental. First of all, if the average daily stay is less than 7 days, then it is treated as a commercial property, not residential by the IRS, which means it's on a 39 year depreciation schedule, not 27.5. Furthermore, the income produced by airbnbs can be considered business income and not rental income. If done properly, short-term rentals can offset directly against ordinary (W2, active) income without the real estate professional status.

Losses generated by increasing depreciation with a cost segregation study, can be used to offset active business income without qualifying as a real estate professional.

@Brandon Hall recently did a 3 part series on his podcast covering the many details surrounding STRs and the specific tax benefits.

You can find it here https://www.therealestatecpa.c...

Really depends on a lot of factors, but typically around 30%. Happy to discuss further via DM

Really, you can do a cost segregation on any type of property, whether it's an investment property or business property, as long as it's not your personal residence.

Each type of asset class will have different averages of reallocation of depreciation to faster lives. As others said above, motels can be beneficial. Happy to help if you have any other questions.

@Bernard Reisz any thoughts on @Denise Mautone's question?

@Donald F. Seller financing can be great option but in the current scenario, it limits the use of your finances. As @Mo Weis said above look to bring in a partner who has some experience, as well as the net worth and liquidity requirements needed for better financing.

As far as your desire to use bonus depreciation to offset your income, it can be a great strategy if used properly. But as I always say, don't do a deal just for the tax advantages, make sure it's a good deal on it's own.

Why do you assume the only way to 'defer' taxes (as you say) is by buying junk? I agree with you and @Michael Plaks that one should focus more on increasing income and cash-flow more than on decreasing taxes, but tax strategy certainly should not be overlooked or taken lightly.  

If I was in the OPs situation with such a high tax bill, I would also be looking to use strategies like cost seg to save 6 figures in taxes, and use that money to buy more income producing property. Keep that method going each year as much as possible, so even if several years down the road when you sell a property and have a tax bill, it will be far less of a hit, because you have used the tax free money to compound your wealth over the years. What that has to do with 'junk properties', feel free to explain yourself.

Kurt, due to my industry expertise, I have a very wide network, and work with hundreds of syndicators nationwide. Networking, whether in person or with online meetups, is the best way to meet new people, and find out who is active. As I mentioned I know all of these syndicators personally, and have worked with them. I would be happy to make an introduction if you would like.

@Bonnie Griffin Kaake you are really seeing 30-40% of the purchase price reallocated to tangible assets on a duplex/triplex?

Do you mean 30-40% of the tax basis, after land allocation? Even still, that is extremely high for a duplex in my experience.