I'm not in Oakland right now (wish there was a general "Bay Area" category) but would like to find a 2, 3, or 4- plex that I can live in and rent out either in Oakland or elsewhere in the bay area. 

If we don't invest it and take advantage of bonus depreciation or 179 deduction/depreciation, then we'd be paying significantly more in tax after the income passes through as schedule K income and we would not be getting the maximum amount of benefit that we could with a sum of money like this. 

Would love to be able to see how each category is performing in real time.

Per code, as-of-right, a building with a CMX-1 zone designation is permitted a maximum of two or three dwelling units (dependent on lot size) plus any applicable housing density bonus pursuant to section 14-702(7).

Make sure to verify all types of income with paystubs (or signed offer letter), bonuses, and 1040 or W2/1099.

Cost Segregation just analyzes what you purchased.You don't do a cost segregation on items after purchase because you know what they are and can determine whether they need to be depreciated over 27.5 years or a shorter time period, in which case it would be eligible for bonus depreciation.

@Ashish Acharya thanks. the huge loss would come from depreciation, especially if i get a cost segregation analysis for the recently purchased property. so the personal use residence limitation supercedes everything else we were discussing, and you cant take advantage of excess losses or bonus dpereciation to offset w2 income if you have personal use?

Here’s your answer:Depreciation (Line 13/14) – can be added BACK as income Business Use of Home (Line 30) – can be added BACK as incomeVehicle Miles (Line 44A) – can be added BACK as incomeUn-allowed Meals and Entertainment (Line 24B) – is subtracted FROM your incomeIf you have a choice on HOW to deduct the items above then you want to CHOOSE to try to deduct them in those categories.

Did you take any bonus deprecation at any time? 

Hi All,Interested in purchasing a STR this year, meet material participation rules/100 hrs, obtain cost seg and bonus depreciation.