If you never rented or treated it as an investment, the IRS could disallow it.

The IRS regulations recognize work that’s done in anticipation of starting a business as part of the activity.

Just make sure you’ve got some backup (photos, estimates, etc.) so if the IRS asks, you can show how you came up with the numbers.So yes, you can bonus in 2025 and still demo in 2026 with no problem—the tradeoff is whether you’d rather have a bigger upfront bonus depreciation now, or a bigger demolition loss later....This post does not create a CPA-client relationship.

The structure is as follows:I receive the property as a gift, based on its appraised valueWe sign a promissory note for that value, with the intent to pay it off at refinanceI assume operational control immediately and take the lead role in managing the assetI’m modeling this as a hybrid between a gift transfer and a seller carry, and I want to ensure:The promissory note is compliant with IRS rules to avoid imputed interestWe’re not triggering unintended capital gains exposure on either sideThe deal protects both parties in case of default or delayed refinanceIf anyone has experience with family-based seller financing, promissory note structuring, or tax overlays in hospitality or real estate, I’d love your input.

I think your tenant saw a gravy train and hopped on. 2024a_1318_signed.p My thought would be try to reset expectations in line with the law and also get her out.

From what I’ve seen with investors I work with in the Midwest, the IRS typically looks for the property to be “placed in service” before year-end.

Any chance you would be willing to hop on a quick call with me to chat through it.

Imagine my surprise as I walk up to this structure, thank god I was "awake" enough to be able to notice this beautiful piece of Architecture:The enigma that was Roark hopped out at me in real life in the form of his temple, in reality it was designed by Frank Lloyd Wright.

However, whether you can use cost segregation depends on how the IRS views your intent and use of the property going forward.

More importantly, depreciation isn’t free — it’s effectively a loan, because the IRS requires recapture when the property is sold, leading to significant tax liabilities that offset earlier savings.