Is it possible to carry over bonus depreciation to next year?

[Peter Morgan]

Hi,

I am considering a syndication investment with 80% bonus depreciation on the first year.However as I understand the depreciation has tax advantages over passive income only but not on regular W2 income.

Had passive income for this year 2023 which is already being covered through 'passive losses' of another investment. If I take up this investment now can I carry forward and offset yo next year this new and additional 80% bonus depreciation? Ppease note Next year I will either have capital gains through sale of real estate or passive rental income.Appreciate your inputs.

Thanks

[Michael Plaks]

Quote from @Peter Morgan:

I guess form 8582 needs to be filed and it seems like New Jersey the state where I moved early this year does not allow passive loss carryovers and requires losses be taken against gains in the same year that they are incurred and I think federal carries over.

Oh boy, please don't bring states into this. It's a royal mess.

Correct, New Jersey has unique rules prohibiting carryforwards. California does not allow bonus depreciation, to begin with. Every state with state-level taxation has their own quirks.