Bonus depreciation in a self directed IRA

[Tyler Speelman]

Hi Everyone,

If you invest in a syndication using funds from your self directed traditional IRA can you take advantage of bonus depreciation to offset any taxable gains when you withdraw or convert to a Roth IRA?

Thanks in advance! 
Tyler 

[Michael Plaks]

Quote from @Tyler Speelman:

If you invest in a syndication using funds from your self directed traditional IRA can you take advantage of bonus depreciation to offset any taxable gains when you withdraw or convert to a Roth IRA?

No. All tax attributes of the investment itself belong to the IRA. Bonus depreciation would reduce taxes on the IRA itself, if any, and those taxes are likely zero already.

Taxes on withdrawing or Roth conversion are on the IRA owner, yourself. Bonus depreciation of the underlying investment has nothing to do with those taxes.