All Forum Posts by: Peter Morgan

@Carlos Ptriawan

Yep,tapping on HELOC is completely out of question that arbitrage & risk doesn't make any sense at this time for the waffle thin returns. Thanks I got your point to invest in something tangible under my control.

@Bette Hochberger

Great thread to start a topic on Tax Strategies.

Does this include bonus depreciation?

Its 80% this year, planning to leverage it to offset capital gains tax upon selling a rental next year.

@Travis Biziorek

Thanks Travis the strategy makes lot of sense.

The property is a three door and even though it cash flows well due to the very low interest rate, the property tax seems significant in the 16k range, factoring in capex expenditures down the road ,vacancies, PM expenses etc it probably seems like a good idea to sell and make investments that scale even better

@Brock Mogensen

Thanks.My goal is to completely replace my W2 income with monthly cash flow.

@Jay Thomas

Thanks that was helpful. For someone who needs to relocate due to work and don't enjoy being a out of state landlord perhaps redeploying may be a better option.

Hello,

Since both refinancing and HELOC are both expensive at this time. What would you advise to someone who has 500k equity (post taxes and fees) and 500k with a low interest rate of 2.5?

Is it possible to redeploy 500k in another investment including Syndication to substantially offset with much better returns the advantages of a low 2.5 interest rate? Appreciate your inputs on this.

Thanks 

Hello,

I am planning to sell my primary residence

as I need to relocate to CA due to my job in San Francisco , there is approximately 500k buil-in equity. Appreciation is not very aggressive here as it's in CA so selling is making more sense besides renting for cashflow is also not making sense.

I will be moving with family so I need a good place to live in a great school area for my kids.

I hear a lot these days that renting is much cheaper than owning a home especially in CA.

Am I better off investing my tax free dollars of the proceeds in other investments with much better returns while renting in CA or is it a good idea to invest in areas like Dublin/Pleasanton, Walnut Creek,San Jose etc hoping for a higher appreciation in the future. Appreciate your inputs.

Thanks

@Michael Plaks

Got it! carrying forward losses from bonus depreciation  is still a very powerful tax strategy, as @jack Martin beautifully put it as an arsenal of arrows in the quiver inspite of the state tax quirks. Thank you!! this is very helpful.

@Michael Plaks

Thank You! :)

This is very helpful information, I am considering a fund, where the investment offers 80% bonus depreciation the very first year, 60% next year and it will eventually taper off reducing 20% every year as far as I  understand  , I guess form 8582 needs to be filed and it seems like New Jersey the state where I moved early this year does not allow passive loss carryovers and requires losses be taken against gains in the same year that they are incurred and I think federal carries over. The investment makes more sense when there are capital gains or passive income as cover but I feel some what blocked doing the math to validate  if the investment makes sense knowing well before hand there won't be any state tax carryover.

Hi,

I am considering a syndication investment with 80% bonus depreciation on the first year.However as I understand the depreciation has tax advantages over passive income only but not on regular W2 income.

Had passive income for this year 2023 which is already being covered through 'passive losses' of another investment. If I take up this investment now can I carry forward and offset yo next year this new and additional 80% bonus depreciation? Ppease note Next year I will either have capital gains through sale of real estate or passive rental income.Appreciate your inputs.

Thanks