Which properties are the best for maximum depreciation using cost segregation?

[Sahil Singla]

Hi everyone,

I am an aspiring real estate investor and I got interested in real estate primarily due to the tax benefits. I want to reduce my w-2 income by running a short term rental and claiming bonus depreciation. 

I am trying to figure out which property can provide the maximum depreciation tax benefits? Meaning if I invest $x into some property, I want the maximum percentage of $x as income that can be claimed as bonus depreciation. I am aware that land cannot be depreciated. 

Will it be Houses, Townhomes, Multi-family, Condos, Apartments or Manufactured homes? 

[Michael Plaks]

Wrong reason to go into investing for tax benefits. Invest for cash flow and appreciation, and tax benefits are a distant 3rd in the list of reasons.

Similarly, don't choose the type of properties you buy based on taxes. Choose based on their potential for cash flow and appreciation.

And you may not fully understand how STR taxation works. The potential tax benefit is for the first year of ownership only. After that, it's likely to increase your taxes since it's supposed to cash flow. Which is good.

Read this: https://www.biggerpockets.com/forums/51/topics/1075919-five-common-myths-of-cost-segregation-and-100-bonus-depreciation