Hello BP STR experts,
If I buy land first for constructing/manufacturing home, can I then claim bonus depreciation for such a constructed/manufactured home and use that calculated depreciation amount to offset my W2?
Note: I am under the impression that me material participating in this exercise will fall under the "Real Property Development or Redevelopment" activity, thereby allowing me to cost segregate the home construction cost.
Let me explain with example:
- Assume I purchase land worth 50K in August 2024, and then hire contractor/architect and spend over 100+ hours discussing the building plans, etc to either construct a SFR home or a Manufactured/Mobile home.
- I will also supervise the construction and other related activities (but will NOT build the house myself) .
- Let's assume the total cost of construction is 200K (or 150K if it's a manufactured/mobile home).
My Question would thus be-
Can the STR tax loophole strategy allow me to offset 60% of the 200K amount that I paid towards construction of the home, (or 60% of 150K if it's a Manufactured home)
Any success stories with this kind of approach?
