All Forum Posts by: Natalie Kolodij

Hoping one of you great people can clarify something for me. Looking at bonus depreciation and wondering if it is based on the county assessed value or purchase price?

We purchased a commercial building for $420k and the county has the improvements at $115k. I my mind doing a bonus depreciation wouldn't make sense if it is only on the $115k value. We have 6 other single family homes and have 2 high income earners so trying to bring our taxes down as much as possible.

Thanks!

Thank you all! This is so helpful. We were advised by a lawyer to set up the structure this way a few years ago (LLCs funnel into an S Corp), and now realizing that this was poor advice due to the tax implications down the road. We really need more than a tax filer, and instead a tax planner/strategist to avoid these things in the future. 

Hi, I have three rental properties in Houston (TX) and all three have passive losses. I have regular W2 job and thus active income. I file jointly with my wife. She does not have active income.

what is best and easy way to offset these rental losses to my active income, I researched and found two ways.. but not sure what is correct 

1. If my wife obtains a real estate agent license, will we be able to offset these passive losses with my active income. All 3 rental properties are managed by Property management services. 

2. or is this possible to offset losses by she just talking to property managers.

Thanks in Advance.

When your CPA says that because you didn't invest any additional basis or money into the LLC's, hence you cannot claim the accelerated depreciation, she is not taking into consideration that your RE status will allow you to deduct passive losses from your properties against your husband's ordinary income. If you didn't have RE professional status, then she would be right. You'd have to carryforward any losses that went beyond your LLC's basis. But I find it hard to believe that any CPA would not understand this.

I am NOT a CPA! Hard to say without some more details, but having just gone through this the first time myself:

My understanding is that if the Ohio property is an LTR, you can only use losses from that to offset against LTR gains and rollover the rest. The only exception to this is if you earn Real Estate Professional Status.

The losses on your Delaware STR vacation property may POTENTIALLY offset against your W2 income. If your average rental period for the DE property was <7 days, and you didn't personally use the property for any more than 14 days, this gets classified as business activity income (as long as you materially participated in managing it). There are some hoops to jump through, but since this is active income you can then use any loss (including depreciation) to offset your W2 income.

A great many CPA's that are not real estate specific will not understand the STR loophole. Do your research on here and you will find lots of info on this. My rule of thumb - if you can't find a CPA that understands what you want to do, call 10 more!

I dont believe for any income level you can use passive loss to offset w-2 income. 

Only works to offset other passive gains. I'm not an accountant but thats how my taxes have worked the past few years.