All Forum Posts by: Adam Zuar

@Michael Plaks - Thanks for sharing; great information! I must admit, I'm very new to real estate, so forgive me if the following question doesn't make sense...

I just finished this video regarding passive activity losses:

My understanding after viewing the video is that you can use up to 25k of passive losses against your W2 income if you're not a real estate professional. That seems great, but I'm curious how creating an LLC and maybe trust fund might help from a tax perspective. If I were to hypothetically create a trust, and have the trust fund fund an LLC to buy real estate, then there would be no "active" income for the trust fund. Is that accurate? Then, the trust fund could use the passive losses at the end of the tax year from the first rental property to buy another property? I know this can get complicated quickly, and I'm probably missing some important steps along the way..

You also mentioned "material participation" - is that similar to being a real estate professional? 

Thanks!

My parents bought a short term rental property in Cape Coral Florida in 2021. From what I understand, they can use bonus depreciation once a cost segregation study is done. Unfortunately they did not get a cost segregation study done, or use bonus depreciation while filing their 2021 taxes.

1. Are my parents still eligible for bonus depreciation? and if so, how does using bonus depreciation in "year 2" (i.e. 2022) differ from using bonus depreciation in "year 1" (i.e. 2021)?

2. I heard that once your modified adjusted income is over 100k or 150k that you might not be eligible for bonus depreciation. Is that accurate? Assuming it is accurate, perhaps the best approach would be to put the house in a LLC before doing their 2022 taxes?

Source for this assumption: https://www.therealestatecpa.c...

Lastly, is there a real estate CPA that someone can recommend in the Cape Coral Area?

Thanks!! 

Adam