Ask me questions on Real Estate Tax Strategy or Investing. Answering all Questions.

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As a specialized real estate CPA serving investors nationwide, I'm here to provide expert guidance on your most complex tax matters, from navigating 1031 exchanges and cost segregation studies to optimizing your rental property deductions and handling multi-entity structures. Whether you're a seasoned real estate investor or just starting out, fire some questions at me and let me provide you with some insight that I'm hoping will be helpful to you in your investing journey.

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Thanks.

Kislay Shah CPA

[Jason Pender]

I am trying to get a clear answer on bonus depreciation.  Everything I have read tells me I need to qualify for REPS to be able to use the passive losses (bonus depreciation) of a short term rental property in order to report this as a deduction against my W2 earnings for 2023.  However the company that has provided a cost seg estimate says that the bonus depreciation can be used with REPS status if the property is classified as 'Commercial'.  So my question is as follows; are there any circumstances where the bonus depreciation derived from a cost segregation analysis can be used to offset W2 earnings for tax year 2023 without qualifying for REPS?