@James Miller As I understand it, the 179 deductions are available only for commercial properties, which would include apartment complexes but not single family rentals, correct? Also, I don't think you can carry forward losses from 179 deductions, correct?
@Michael Plaks Under the new tax law, if you purchase a SFH rental that is a fixer and requires a big remodel, you should be able to expense many of those costs and 100% depreciate many of the rest, use some of that loss against your W2 income (I think up to $3k?, granted not much), and carry forward the rest of the loss for future years. Have I got this right? If so, it seems to me that under this new tax plan, it would be advantageous to buy fixers until the 100% depreciation expires in 2024 (or whenever), fix them up creating a big loss in year 1, deduct what's allowed in year 1 against your W2 income, and carry forward the rest of the loss for use against future earnings (both rental earnings and a little bit of W2 earnings)? Or, better yet, if a spouse can qualify as a "real estate professional" managing the remodel, all of the big loss from the rehab expenses and 100% depreciation could be used against the W2 earnings in the year the loss occurred? Thanks in advance for your thoughts and input!
