It’s a great time to buy during the low season to get launched, stabilized and get your tax write offs now (60% bonus depreciation this year vs 40% next year).  

I'll through a bonus in at the end.

Can I use bonus depreciation on this property to offset my W-2 income taxes?

The tax benefits of bonus depreciation can lead to massive savings but losses won’t help one bit if you can’t use them.Before you buy a cost seg, you need to know the rules:Tax all starts with the types of income.1.

The bonus deprecation rules apply here and it would be a conversation you would need to have with your accountant as to what the best course of action is.

Book losses through bonus depreciation.4.

My question is if we buy something now and do cost seg and have bonus depreciation.... can we offset  that $100K of capital gains?

Yes, I know bonus depreciation is 60% for 2024.My questions:1) Does this sound valid, or are there many more complicated steps for this to work?

If I purchase an investment property with an LLC can I still take advantage of the STR bonus depreciation?  

It involves using Section 179 or bonus depreciation, and I would not DIY this project, as distinction between repairs and capital improvements is one of the most confusing areas of the tax law.And no, you do not need a cost segregation study to deduct these components of your rehab - if you have itemized invoices and receipts.Myth 8: for a valid 1031 exchange, I must exchange STR for another STRNo, you don't.