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Updated over 3 years ago, 05/03/2021
How to reduce my active income tax liability? Bonus depreciation?
I have appx $250k worth of active income this far (commercial real estate broker), and I have another $300k in income coming (though I am rolling my fee as equity into the deal so it will not be reported as income on my tax return this year).
What are the best ways to offset the huge majority of that $250k income I have? I was thinking bonus depreciation. However, I wanted a better idea of how much I would be able to offset. Hypothetically, if I invested $200k into an $800k duplex/triplex (financed $600k), what % of that do you think could typically be depreciated in year 1?
If you have any other creative tax incentives/ideas of how I can reduce my tax liability this year, I'd really appreciate it! Thank you.