All Forum Posts by: Ron Singh

@Ashish Acharya

Thanks, Isn't limit for bonus depreciation is upto max income of the business ?

in other words if business income is 60k, can bonus depreciation be 80k ( which is total cost of truck)

Hello Hello !

Going for a business vehicle purchase and wondering:

if the cost of vehicle is more than business ( property rental ) income in the tax year,

can it be split in two consecutive years ?

for example :

Rental income 60k in 2022

business vehicle Truck cost : 80k , purchase in 2022

using 179 I can only claim upto 60k for tax yr 2022

so the question is, can I claim remaining 20k in next filing for tax year 2023?

if not is there any alternative ?

whats best way to buy larger apartment complex (50+ units)

- is 25% down standard ? is it same for 1031 exchange scenario?

- how to shop for lender / best possible rate / no pre payment penalty etc

@Michael Plaks

Great thanks for details, I prefer 100% bonus depreciation as well.

per my understanding

- even if it says 100% depreciation, its only 100% of income from business only (rents etc in case of property rental), correct?

- can the leftover be rolled over to next/subsequent years ?

I.e rental income 60k and truck cost 80k, can it be depreciated in 60+20 in two subsequent tax years ?

- does 100% depreciation also follow the bonus recapture if you sell the vehicle after 5 years?

@Michael Plaks

Great points, also how about tax deduction recapture.

say you take 100% deduction using 179 this year, would next year tax deduction recapture would start, how the calculation works ?

@Michael Plaks

is there any requirement for section 179 to have a llc ? or if someone has rental property business in individual name, can still claim ?

(179 for business vehicle purchase)

also let's say you used 100 % depreciation in year 1, and sold vehicle after 5 year, how much would have to return in next tax filing.

@Logan McKay Zylstra

great,yes need an upgrade on the vehicle, due to crazy prices now days and shortage of vehicles i can wait few months.

doubt 1=

For section 179: do I have to have LLC ? or running a rental business under my name qualifies too ?

doubt 2=

let's say I need to deduct 100k ( vehcile cost)

however Earning/income/from rental =60k , stock =40k

my doubt is > can full business vehicle cost be depreciated from total income

or

only upto the limit of rental business income , as the vehicle is for business use.

If you have huge capital gain in 2022 ,say either stock sale or w2 income 100k or 200k etc

what would be your preferred way for tax deduction to offset ?

1. Buy next rental property to add in your Portfolio

2. buy business vehicle (even if you don't have llc )

3. upgrade/ reinvest in existing rental properties

3. any other suggestions ?

@Ashish Acharya

whats best use of money if someone has additional income from stock sale / w2 in a particular year.

say 100k or 200k you have additional to invest in a way, which can be used as tax deduction in next year.

what would you suggest

1. would buying a vehicle under section 178

or

2. real estate / investment property

or both

any other options available ?

any restriction / risk which might prevent the deductions.

@Ashish Acharya @Nathan G.

thanks for your quick response

I believe the limitations starts if mortgage amount is over 750k on single property

also , if your AGI / taxable income is above 400k

are there Any other limitations ?

is there any benefit for tax purposes, having same properties in a llc VS individual name ?