Lastly as an illegal unit it is  huge liability if there was a trip and fall claim, fire etc your insurance may not cover.I recommend renters insurance for whoever lives there is mandatory to add another layer of protection. last option not considered is you living in the bonus unit to have a free place to live with minimal risk 

Just be mindful that georgia does not recognize bonus depreciation. 

Now using the de minimis/routine maintenance safe harbors instead of bonus depreciation for appliances, carpet and the like.

The 1245 property (think personal property and bonus depreciation) is recaptured at ordinary tax rates though… so the new property must have an equal amount or more 1245 property. 

Can anyone recommend an investor-friendly agent (bonus if they can also analyze deals)?

Ohio also has a couple of other special rules such as the CAT tax and a funky bonus depreciation treatment.

Bonus depreciation from a cost segregation study is 60% for 2024.

If they’re doing it for dirt cheap and gave great service, I’m a lot more likely to give them a “bonus” than if they charged me full rate and took a long time to get to the worksite.I don’t think there’s a hard and fast rule on anything, but if you want them to treat you well, you need to treat them well (pay when asked, provide meals for him/her and their crew, be flexible when you can, pay extra, etc.).   

Bonus depreciation will decrease to 40% next year, but we are hopeful to see the bill passed to extend the 100% bonus deprecation in the future.

Passive investors will now receive a passive return, not the bonus return they received when the market was new and exploding.