All Forum Posts by: Yonah Weiss

Bulked together 5, 15,. That's what the 'depreciation schedule' or "FASR" as I mentioned before, is for. To list everything separate (i.e. show your work) The tax form should just have the bulk deduction number. 

 @Zachary Gray Tenant Improvements, can and should be depreciated, especially when they are large, and cost segregation is certainly needed if you have structural and non-structural components. You do not need to own the property to be able to depreciate. However there could be complications if the owner reduced rent based on your cost of improvements. 

As far as your second question. BP doesn't allow self promotion 😉 

@JD Martin Bulk it together on one 4562. Most accountants will create what's called a "federal asset summary report" breaking out all of the items on their respective schedules, and just including the total deductions on the 4562.

It's unfortunate to hear. Thanks for sharing @Zach Alms

Good to hear that BP removed the episode @Scott Trench. @Ash Patel, that is cringeworthy, but usually when people say that it's due to ignorance. If a savvy investor says that he tells others that in order to invest with them, that is ill-intent.

I refused to interview him on my show, just got a bad gut feeling about him.

Unfortunately the world is filled with bad actors who have bad intentions, and think they don't have to abide by the law. As @Joseph Gozlan said, it makes it harder for the rest of us.

@Amy Konopka Good you came to BP for a second opinion, and I'd love to hear what @Natalie Kolodij has to say, but I'm not sure we have enough information to determine if your CPA is incorrect or not. This is why, if you're looking to have a cost seg done, you should first have a conversation with your CPA, to see if you will be able to benefit from it, or to see if you need to find another CPA 😊

The fact that your PMC is held in a C-corp should not have bearing on whether or not you can benefit from the depreciation. You have REPS, so the depreciation should be able to offset not only your schedule E income, but also your income paid to you from the PMC.

 Mostly correct. For a rental or business property, in order to know what is eligible for bonus depreciation, you have to have a cost seg study done first. 

There are however, certain types of improvements as well as equipment/furnishings etc. that purchased separate from the property that can be taken as 100% bonus depreciation as well. 

@Adam David Graning congrats on your upcoming closing! To claim depreciation (not just accelerated) for the tax year, the property needs to be placed in service on or before 12/31, which is loosely defined as being listed, or available for rent. 

Excellent post as always @Michael Plaks! As always, there is much more to it than meets the eye when it comes to tax tools. 

Moral of the story, do your research and have a discussion with your real estate tax advisor before signing on the dotted line.

Thanks for the mention @Brett Chupka 😊, I usually make the distinction on most podcasts about being a real estate professional (REPS) versus not, as I did on the BP episode as well with @Terrance Doyle at around 22:00 minutes in. It's usually not beneficial if you are a W2, OR it's not a Short Term Rental.

@Greg Scott, I'm always happy to be wrong!

Let me know if you have any other questions.