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Updated about 4 years ago on . Most recent reply

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Jared Stine
  • Rental Property Investor
  • Danville, CA
3
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Capital gains offset through real estate and cost segregation

Jared Stine
  • Rental Property Investor
  • Danville, CA
Posted

There's the potential of having a relatively large capital gains tax through my crypto investing as I take profits this year, which is taxed the same as stock. I'm curious if there's the potential to instead use the money to go towards the purchase of investment property, cost segmentation, and accelerated depreciation vs. just eating the tax bill. It sounds like this "loophole" might be closed through PAL, but I'm hoping someone can clarify if that's the case or if there are any other unique ideas. I understand that's a lot of moving pieces that have to fall in place, but just looking for some ideas. Thanks! 

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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
Replied

Need to examine if you'd receive any tax benefit or if it'll all get caught up as passive.  e.g. real estate professional, $25k allowance, etc.

There may be opportunity for tax planning but no one will be able to help based on what you've provided.

A CPA that you've engaged, one who knows your facts, circumstances, and goals is in the best possible position to help.

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