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Updated over 6 years ago on . Most recent reply

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Waylon Black
  • Pontotoc, MS
0
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4
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Help understanding depreciation

Waylon Black
  • Pontotoc, MS
Posted
I’ve read conflicting answers on depreciation and how or if it can be used against w2 income. I have decided to get started investing in rental houses and I’m trying to understand the tax side before buying anything. My wife and I have $130-140,000 combined w2 income before anything comes out. Say we were to buy 1 or 2 $80-100,000 houses this year and on paper they created a loss. These would be under a property management company. We wouldn’t be actively involved. Would the loss be able to go towards the w2 income? If so wouldn’t it be beneficial to get a cost segregation done to take advantage of the 100% bonus depreciation to get a bigger refund and invest in another property? If we can’t use the lose would there even be a need to do a cost segregation?

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