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.

Unfortunately, if any of the proceeds touch the seller's hand, the IRS sees it as taking a profit. 

These answers will determine how much cash you can actually pull from House A.  

The IRS and credit bureaus don’t share that kind of direct reporting link.It’s one of those “behind-the-scenes” structuring advantages that can help investors scale — as long as it’s done right. 

I recommend that you let your regular accountant file your tax return as it was prepared, because this will minimize your IRS penalties and interest should his result be confirmed as accurate.Then later on you find one of the real estate tax professionals, there are over 20 of us here on the tax forum, and get a qualified second opinion.

So, this is how we put the deal together.First, you determine ARV (After Repair Value) so you can see if this one is actually worth buying.

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

Here is a short article about this: http://www.nolo.com/legal-encyclopedia/can-you-ded...And the link to the IRS publications regarding this issue: https://www.irs.gov/publications/p550/ch03.html#en...

In the real estate world, I encountered numerous challenges that tested my resilience and determination.

., time spent on guest communications, cleaning coordination, repairs, marketing, etc.).Proper documentation not only supports your position in the event of an audit, but it’s also essential for meeting the IRS thresholds for material participation under the STR exception.happy to help.