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Updated about 2 years ago,
Bonus depreciation to reduce w2 income tax
I and my wife are w2 employed and am in a high tax bracket. after 13 years of paying high taxes and living in the cave, I am now aware of this real estate investment/cost segregation/bonus depreciation, etc. so i have listened to several podcasts / YouTube and read a couple of books on the subject.
with a full-time job it's unlikely to get REPro status, only way forward seems STR as the requirements to qualify to seem less stringent.
I am looking for 2 M investment with 500 down and expecting roughly 25-30 % of price value as accelerated depreciation, accounting for nearly 500k which can save me 175 k in taxes on w2.
I wonder what my options are other than STR ? will syndication or commercial RE or apartment complex or something else can get me the opportunity to reduce w2 income from my employment?
also if i switch in future years my STR to LTR will i be returning the captured depreciation back ?
i will appreciate your valuable comments and thoughts.