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Updated over 3 years ago,
Jump to LP to get more depreciation?
I am currently trying to buy one $400k single family rental in my area of Sacramento, CA every few years. I am currently just deprecating on basic 27.5 years. I am starting to generate more passive income from another business which gives me more need for more upfront depreciation. My question, are cost seg studies really $5k-$10k? Do most people just figure it out through their CPA?
What I’m thinking is would I be better off just investing $100k as a LP through a reputable syndicator to get easy bonus depreciation upfront, or should I continue to do what I’m doing and just hire someone to do a cost seg. So I can bonus depreciate. I see myself going more and more passive in real estate as I get older.
Very new to how bonus depreciation actually works. I’m not “real estate pro”, so only need depreciation to offset my other passive income. For the time being. Thanks for any insights!