We have run a cost seg study on the property and qualify for 80% bonus depreciation.

Obtained a bonus to switch employers8.

Here are a few definitions that you absolutely must know.Bookmark this thread and use it as your cheat sheet for 2024.Okay, let’s dive in:Here are the terms that I’ll define in this thread:-DEPRECIATION-BONUS DEPRECIATION-COST SEGREGATION -BASIS-LAND VALUE-IMPROVEMENT VALUE-3115-RECAPTUREDEPRECIATION:Depreciation is the decrease in $$ value of your asset over time due to wear & tear, etc.Standard depreciation is deducted evenly over 27.5 years for residential and 39 years for commercial.Even w/o cost segregation you get to deduct depreciation each year.BONUS DEPRECIATION:This is an accelerated depreciation method.

Bonus: I know MTR operators in your market I can connect you to as well.

Do what makes sense for kickbacks on your cards (hollar Amazon) but I have two main cc with great bonus plans that I use for most materials. 

Like vehicles  airplane or equipment for your contracting business .. or real estate with its bonus depreciation but its going down and not as attractive as a few years ago for sure.   

Assets identified in this study include:Permanent Fixtures: windows, doors, bathroom fixturesStructural Components: Roof construction, drywall, wood framingBuilding systems: water heater, electrical distribution, HVAC, plumbingInterior Construction: Wood flooring, stairs, ceramic tileThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

You can use REPS through your wife to offset your 2024 W-2 income by combining your time for material participation and doing a cost segregation and bonus depreciation on the remaining rentals.

The real estate appreciation, you can reduce your taxable income, and the interest on your mortgage is usually deductible, which is a nice bonus.

Bonus that the rents are higher than the lower comps you pulled (double check because tenants shop around, so may be your comps were not equivalent).