Allocate the travel expenses based on the primary purpose and time spent at each property.

Work with a real estate CPA to handle depreciation, cost seg, and proper allocation of tax benefits.

@Damon M.You will need an attorney to draft your operating agreement stating how profits are handled, how losses are allocated, and who is responsible for what. 

Here are a lot of numbers :)Price 175kgross rent - $1,700. 850 for ea. unitproperty tax- $2576 annuallyinsurance- $1200 annuallylease for both tenants are in place until late 2026potentially, no repairs needed.tenants pay all utilitiesvacancy rate - 1%management fee- $170 monthlytotal monthly expenses $1391 (Mortgage-900, taxes-214, insurance-100, variable expenses-178) total monthly income $1700  If you are allocating for sustained expenses, you should allocate for maintenance and cap ex even if it is a new build.  

Structuring is easy -- set up a separate LLC with this group, allocate % of ownership on the LLC based on % of ownership in the properties, capital investments, etc. however you'd like.

When dealing with federal, state, and local NOFA (notice of funds availabilities), do government funds allocated for affordable housing often get depleted from too many developers requesting funds for new projects?

Without REPS or STR-level material participation, the depreciation losses will be passive and may only offset passive income or carry forward.So yes—this is a viable strategy, but to unlock the full tax benefit, make sure you:Use a qualified cost segregation providerWork with a real estate CPAConfirm REPS or STR eligibility to apply losses against active incomeProper allocation and documentation are key to maximizing the deductions while staying compliant.This post does not create a CPA-Client relationship.

Understanding your depreciable basis:Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

Food insecurity means that individuals and families cannot consistently access the food they need, often forcing them to make difficult choices about how to allocate their limited financial resources.

If purchasing new real estate as part of your reinvestment, a cost segregation study can maximize depreciation deductions, offsetting future taxable income.For effective planning, assess how the sale price is allocated between real estate, tangible assets, and goodwill, as this determines the tax treatment.