Bonus depreciation hurts DTI?

[Alik Levin]

Dear lenders and those in the know!

Will bonus depreciation/Cost Seg/RE Pro election hurt my DTI?

I am going to massively reduce my tax burden when filing 2018 by aggressively utilizing cost seg+bonus depreciation+electing real estate professional.

The tax return should be showing nice refund and reduced income as a result of the above, I suspect.

While I will be laughing all the way to the bank with the nice refund, will my DTI suffer now that my tax return shows reduced income?

Essentially, am I shooting myself in the foot from financing perspective? I would expect the lender would say "Hey you have nearly zero income on your tax return, no financing for you!"

Thoughts?

Thank you

-Alik

[Chris Mason]

@Wayne Brooks and @Basit Siddiqi are 100% correct.

Depreciate everything as much as your tax pro says is lawful. Reduces your tax burden, doesn't hurt your ability to get mortgages, what's not to love? If you were looking into ways to save on taxes other than depreciation, most of those things DO screw with your ability to get a mortgage.... so getting you focused on depreciation is great for me since it means I'll be able to do a mortgage for you in 18 months when you're in the market. :P (I'm actually California only, but the joke stands.)