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Updated over 4 years ago on . Most recent reply
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Bonus depreciation and real estate professional
I receive $16500 in rental income for the year. I remodeled the rental property this year at a tune of $17000. I also pay the mortgage and 10% to a property management company.
Because I have put so much time into the property and seeking/ buying other properties, I can qualify to be a real estate professional to offset my spouse’s income up to $25k.
I would like to buy a truck to use for my rental and potentially other rentals as well. 100% business use.
I am looking at $12k for a Ford F150 (6000lbs). My question is, can I also use bonus depreciation for100% of the truck cost to max out the losses against my rental and off set our personal income? Do I have this information correct?
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- Tax Strategist| National Tax Educator| Accepting New Clients
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Originally posted by @James Mc Ree:
Don't forget you will owe self-employment taxes as a result of being a professional. They take a big bite.
Being a RE pro does not make your rental income subject to self employment tax.
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