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Updated about 4 years ago,

User Stats

3
Posts
3
Votes
David R.
  • Rental Property Investor
  • Jersey City, NJ
3
Votes |
3
Posts

Real Estate Professional - Accelerated Depreciation - AMT

David R.
  • Rental Property Investor
  • Jersey City, NJ
Posted

Some background: I have a high W2 income (top tax bracket) and my wife qualifies as a Real Estate Professional.

We started investing in RE this year (3 SFH) and I have been looking at the option of accelerated depreciation.

If I apply the accelerated depreciation, it would create a loss of ~$150k in 2020; in theory, as married filing jointly we could map that loss against my W2 income (wife is REP). However, I'm not sure how the Alternative Minimum Tax (AMT) will impact this strategy.

Has anyone been in a similar situation in the past, did AMT nullified the tax benefits of REP? my accountant is not too familiar with this (I would appreciate also RE CPA recommendations).

[I'm comfortable with the RPE requirements and the accelerated depreciation process and cost, the only concern is AMT]

Thanks

David

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