Bonus depreciation without being a real estate professional

[Brett Trammell]

My wife and I bought our second rental property last fall - a 4-plex. I’ve been hearing about taking the bonus  depreciation and while it sounds like it would be a great strategy if we were full-time real estate professionals the IRS considers our rental business passive. To make it worse, we’re outside of the earning threshold to claim passive losses against our active earnings. Is there still a benefit?  Maybe for doing a 1031 in a few years into a larger property?  Anybody else in our position looking at this?

Thanks,

Brett

Keizer, Oregon