bonus depreciation questions

[Robby Sanchez]

Hey everyone, i had a question about depreciation, i will give you my situation as an example. i currently own 1 single family that i have been renting out since 2021 and i just bought a duplex in march of 2024 in which one side is my primary residence and i am renting out the other side. I plan to sell quite a bit of stock this year (2024) in order to fund some renovations and want to use the depreciation of these properties (if possible) to offset my capital gains when i sell the stock. Am i thinking about this correctly? I have googled alot of information but it is hard to wrap my head around this specific subject. 

- how can i get a rough estimate on how much the properties will offset? does BP offer a calculator like this?

-if i used bonus depreciation on my single family when i did my taxes this year for 2023 what does that mean for future years moving forward regarding the depreciation for the single family??

- should i use bonus depreciation every year?

-does depreciation work the same in the duplex since i am living in one side and renting the other? do i only depreciate the side that i am renting out? 

-what is the most often used depreciation strategy or what kind of strategies do you use?

thank you !

[Michael Plaks]

No, @Robby Sanchez, you are not thinking about it correctly, and my overly enthusiastic colleagues are fueling you with false hopes.

1. It is possible that you may not benefit from additional depreciation at all. Read this: https://www.biggerpockets.com/forums/51/topics/1121063-expla...

2. Selling stocks cripples your ability to benefit from depreciation even further.

3. If you can benefit, then regular depreciation is a very small deduction, except for...

4. Sometimes you can have a ONE-YEAR boost of bonus depreciation resulting from cost segregation.  Read this:
https://www.biggerpockets.com/forums/51/topics/1075919-five-...

5. Once you did it once, the game is over for this property. You ate the cake. 

6. Yes, you only depreciate the rental side.

7. The most efficient strategy ALWAYS depends on your specific situation. No universal advice.