All Forum Posts by: Kristafer Nicaj

Michael, see follow up questions to your answers from #1 and #3.

1. So if she does the min of 750 hours and materially participates, all in 2024, she could potentially qualify? Would that have to be before Oct 15th?

3. I was under the impression that the depreciation percentage depends on the year you are doing the filing. This is way I thought 60% (since its 60% in 2024). The new tax law that you mention, I read up on it last week. I thought I read that it had to be put in service in 2022 for the full 100% bonus depreciation to be applicable from the new law. 

I really appreciate the feed back, everyone! Im thinking about reaching out to some firms this week!

If I purchased a multi-family property in 2018 and my wife establishes REP status this year (2024), can I benefit from doing a cost seg on that property. I never did a cost seg in the past. I have been paying a lot of taxes every year from selling stocks and have a high W2. I expect to pay about ~$35k in taxes this year.

I also understand it will only be 60% and not 100% bonus depreciation for this year. The property/improvement value minus the land value is about $480k.

PS. If you can recommend a RE CPA+TaxPro in the Dallas-Fort Worth area, I'm all ears! Thank you guys!

Hi @Charles Carillo thanks for the response! However, this doesn't answer my questions. We know the market wrt the business side and have an exit strategy. I.e, Not looking for advice on whether I should reconsider this investment or not, due to the potential failure of the business. 

Thanks. 

tl;dr buying 50% of a commercial building based off a market value from 2020 ($790k from a Professional BPO).

I have an interesting opportunity to invest in my business partners commerical building (industrial building zoned for recreational marijuana). We are opening a licensed cultivation company (LLC) in this building. He owns the building separately under his real estate LLC whom we would be paying rent to.

We agreed it makes sense for me to own half the building as well since we also added ~$1M in construction and equipment into the building. So for tax purposes (all around depreciation etc) it makes things easier to take advantage of taxes. 

So my question is if I buy 50% of the building (I guess take 50% ownership of his current real estate LLC?) how does all pan out with regards to depreciation. Would it be based off the value from our agreed upon value (from the 2020 BPO where 50% is $395k). Also what's the best way to buy the 50% stake, do I form my own LLC and buy the 50% that way? The current value of the building is actually a lot higher now due to market demand since these buildings are limited plus the amount of work we put into it.

It's a great deal (and we both know it) because I truly will have instant equity just on the building itself minus the construction/equipment.

Would like to know details and examples about how these deals usually are put together etc. Anyone have any past experiences?

PS he bought the building off market for $400k back 2017. Would've been higher if the previous owner would've put it on the market. This is in Michigan.