To make this work:Buy and place a rental in service in 2025.Perform a cost seg study to front-load depreciation.Qualify for REPS or STR material participation to unlock the full tax benefit.This can significantly reduce or eliminate your 2025 tax bill, just be sure to plan carefully with your CPA.This post does not create a CPA-Client relationship.

Don’t buy just for write-offs, but this strategy can help you unlock more of the depreciation benefits.Brian Kiczula | CostSegRxCost Segregation Specialist Thank you for your input!

Cost segs unlock these savings, but the losses won't offset your ordinary income from your job unless you are an RE Pro.Here's how to think about RE Pro status to make the best case with your CPA and the IRS:RE Pro Status starts with the IRS definition of a Real Estate Professional (IRS Pub 925).It is not as simple as getting a real estate license or working for a firm that provides real estate services.Ask yourself these questions to see if you qualify:Q1: Are you in the right business?

You’ll Unlock Your Home EquitySelling your current home before you try to buy your next one allows you to access the equity you’ve built up – and based on home price appreciation over the past few years, that’s no small number.

@Josh CorriveauTo reduce your tax burden:Explore REPS (real estate professional status) or STR rules to unlock passive loss deductions that can offset W-2 income.Use cost segregation and bonus depreciation to accelerate write-offs (keeping in mind this is a deferral taxes are generally recaptured upon sale).Structure your brokerage business efficiently to optimize self-employment taxes and maximize retirement plan contributions.I'd recommend working with a CPA who specializes in real estate not just general tax prep  since these strategies require nuanced application and audit-ready documentation.

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Perhaps there's some missed deductions there or passive losses that can be unlocked. 

So even if it’s just for a year or two, using the buildings as temporary storage or workspace could unlock meaningful deductions.There are a few caveats, like making sure the use is legitimate, tracking any related-party transactions properly, and planning for potential depreciation recapture if the property is later sold.

Hello! One of my airbnbs in Boyne, Michigan has around 300-400k in equity locked up right now and I am struggling to get a lender to approve a Heloc. The main sticking points are that it's a second home and it has bee...

Quote from @Ashish Acharya: @Allende Hernandez Great question and it’s one that comes up a lot with new landlords who want to make the most of their tax benefits.To clarify: putting a property into an LLC does not, by itself, create new tax deductions or unlock passive losses.