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.

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.: I think you meant to type was… Thanks @Jeff S.for your free professional advice.

2) Subsidizing rents:- S8 and other programs statisitically only train tenants how to be dependent on the free handouts.If you really want to make a difference, try basic financial education for tenants and the financial demographic they come from!

Google the term UBIT.Tom Wheelwright has a chapter on why you don't want to do this in his book Tax Free Wealth.

Here's my free resource; https://docs.google.com/presentation/d/1qCD_XIgmg-2BGGzsDbWq...

Shayan,Best option to avoid issues and stay risk free along with having a better approval chance would be to go with a Cash out refinance.

Feel free to reach out if you have any questions/to discuss further.

However, I wouldn't say it is a complete tax-free strategy. 

Even for office to market rate residential conversion.And even if you are buying the building super cheap or even getting it for free in that case.The first form of subsidy would be historic tax credits.