Tax Pro help: Benefits for Buyer of an owner financed multi-family?

[Randy Winzeler]

New member looking for tax advice on first RE deal.
Looking to offset taxable income of my current business income while investing in a rental property. Found a deal on a Duplex that owner is offering owner financing.
As a possible buyer of a duplex that is being offered with Owner financing. Can I still get the same tax benefits in regards to depreciation? Cost segregation? 
Obviously owner is Seller financing for their own tax strategy purposes so wondering if that affects the advantages on my end as the buyer?
Thank you in advance for any and all help. 

[Michael Plaks]

@Randy Winzeler

Owner financing changes nothing for you tax-wise. Same as if it was bank-financed.

However, make sure that you can in fact reduce your taxes by rental losses. Read this:
https://www.biggerpockets.com/forums/51/topics/1075919-five-...

Finally, taxes is not a valid reason to buy real estate. It's supposed to be the icing on the cake, not the cake.

[Joshua Thompson]

Michael Plaks hit the nail on the head with his response. As long as you own the property there shouldn't be any impact tax-wise.

If you need further guidance after reading the post I would recommend doing a short consult with a real estate "savvy" accountant. This would be better than learning a large purchase may not help you tax-wise come filing time.
 

[Account Closed]

Quote from @Randy Winzeler:

New member looking for tax advice on first RE deal.
Looking to offset taxable income of my current business income while investing in a rental property. Found a deal on a Duplex that owner is offering owner financing.
As a possible buyer of a duplex that is being offered with Owner financing. Can I still get the same tax benefits in regards to depreciation? Cost segregation? 
Obviously owner is Seller financing for their own tax strategy purposes so wondering if that affects the advantages on my end as the buyer?
Thank you in advance for any and all help. 

 Michael already gave a great answer, I just wanted to add that owner financed deals are usually better risk wise then taking on a traditional loan yourself. For your first real estate deal, getting all owner financing is a nice relatively low risk way to get started. Best of luck! 

[Julio Gonzalez]

@Randy Winzeler You are definitely still eligible for depreciation and a cost segregation study. 
Here's an article with additional FAQs on cost segregation studies that you may find helpful. Feel free to reach out if you have any questions!

https://www.biggerpockets.com/forums/51/topics/1113749-cost-segregation-faq

[Basit Siddiqi]

You are eligible to deduct the interest regardless of the type of loan(Bank or seller financed).

Best of luck

[Ashish Acharya]

@Randy Winzeler Yes, as the buyer in an owner-financed deal, you still get all the usual tax benefits, including depreciation and cost segregation. You can depreciate the property over 27.5 years and even accelerate depreciation through cost segregation. The fact that the seller is offering owner financing for their own tax purposes doesn't affect your ability to claim these benefits. You can also deduct mortgage interest and other rental property expenses.

[Jason Malabute]

Yes, even if the seller finances the real estate deal, that does not prevent you from taking advantage of the tax benefits associated with owning rental property. You can still depreciate the property, perform a cost segregation study if applicable, and deduct ordinary and necessary expenses related to being a landlord.