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Updated about 2 years ago,
- Rock Star Extraordinaire
- Northeast, TN
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Cost segregation/bonus depreciation on house purchased midyear?
Hey all, yet another in the long line of cost segregation posts as our 100% bonus depreciation comes to an end :)
I'm going to key up a few of my go-to tax people here: @Natalie Kolodij @Linda Weygant @Amanda Han .
I have a property that I purchased in the middle of this year that I am finishing a cost segregation on (a furnished STR) that was expensive enough that I hope to wipe out what will otherwise be a significant tax bill this year. I believe the bonus depreciation is going to get me there - but my question is this: will the bonus depreciation be reduced by the months I did not own the property/have it in service in 2022? I know that in years past my property purchases on the 27.5 depreciation schedule always seemed to be reduced in year 1 by whatever time frame it wasn't in service: i.e., a rental house put into service on October 1 only seemed to get me 25% of the regular depreciation credit for that year.
The property I bought this year went into service at the beginning of July so essentially 6 months of this year. Thanks all in advance!
- JD Martin
- Podcast Guest on Show #243