It says you can apply bonus depreciation to $50,000 of it.

Larger properties allow cost segregation and bonus depreciation, offering major tax deductions.

Just follow Texas notice requirements, but consider:• Offering a move-out bonus• Helping with timing so they can transition smoothly• Maintaining open communicationA small incentive avoids friction and protects your reputation.3.

I’d also be thinking about your taxes from the start, understanding the difference between passive vs. non-passive income, and what works with your current income, and see what you can do to make the most of it.You can write off things like mortgage interest, property taxes, insurance, repairs, improvements, depreciation, and even take bonus depreciation on certain components with a cost segregation study.

A common strategy is to keep California properties in your personal name with insurance, then put your Texas properties in an LLC, keeping the states separate.From a tax standpoint, it doesn’t matter much whether you own the rentals personally or in an LLC—your depreciation, expenses, and bonus depreciation still flow through to your return.

I’m not a CPA, so definitely verify any of this with one — but here’s how I understand it from working with dozens of investors around this strategy A few things to think through before deciding if it’s worth pursuing: – Your income and tax bracket — that’s what determines if the benefit’s meaningful – STRs vs LTRs — STRs often qualify for material participation without full REP – Whether cost segregation and bonus depreciation can offset enough income to justify the effortWe’ve helped dozens of out-of-state investors go both routes, many from the Bay Area actually this year haha: some through STRs, others through value-add LTRs using cost seg.

@Chris Watson, also true — I’ve seen beachfront and amenity-heavy condos outperform nearby homes when the buy-in is right.From a tax view, condos often win short term because less land = more depreciable assets under the new bonus depreciation rules.

If you can speculate better than me you might get a bonus but it's not my strategy with long-term rentals.  

This involves buying a property, let's say a property of $1 million as an example, and using cost segregation along with bonus depreciation to write off our W-2 income this year.

thanks for the help I am not a tax expert and so can't tell you WHAT to do, but I can give you some things to look into at least....Since you mentioned STRs you should look into bonus depreciation...You also mentioned cost segregation.