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Updated about 6 years ago on . Most recent reply
Tax benefits ifits to Multiflamiy
Been listening to Real Estate podcasts on BP. talking about tax benefits to investing in Multifamily. I have no experience in multifamily yet. Why are the tax benefits they speak of? Would like some explanation on that.
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#5 Investor Mindset Contributor
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- Greenville, SC
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#5 Investor Mindset Contributor
- Investor
- Greenville, SC
Cost segregation combined with bonus depreciation is huge.
A lot easier to 1031 one 100 unit property than 100 individual houses.
Apartment rehab often stays below the $2500 de minimis safe harbor per item (because apartment communities don't pay retail) - which means immediate deduction and no future depreciation recapture (i.e. an HVAC replacement may only cost $2400).
Some apartment rehab above $2500 per item can be immediately deducted if it does not meet the 20% "unit of property" rules (i.e. replace one HVAC system in a ten unit building).