This is true for bonus depreciation items as well.  

It was Civic Financial - I’m not sure they do referral bonuses or anything but I can share a contact info if you needed someone.

The issue with section 179 expense is that you normally have to operate at positive income.Under most circumstances, bonus depreciation is better since you can take bonus depreciation even if you operate at negative income. 

Today, I analyzed over 10 condos, and while I found one with a positive cash-on-cash return, it was far from impressive.I’d love to hear from experienced condo investors about why this type of real estate might make sense despite the low cash-on-cash returns and HOA fees that cannot be influenced.As a bonus, if anyone has purchased investment properties for their children with a similar goal, I’d really appreciate any insights about your process or results.I am looking at buying 2 investment condos for my children to pay for their college tuition in 13-15 years.

Here’s an example of bonus depreciation.WHAT IS THE COST OF A COST SEGREGATION STUDY?

A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

What is drawing your eye to Flagstaff besides the bonus of already living there. 

(I'm not including expected appreciation in my ROI numbers, I'm just treating that as a bonus). 

Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.

Garage parking, full privacy fence, and second living area or bonus room would all be needed to get on the higher end of that range.