(Bonus points if you are from Canada too!)

. - Bonus Depreciation Recapture form the cost seg you did can be taxed at the marginal rate but this can be minimized the the asset is held for more than 4/5 years. - Capital Gains: Gains from appreciation remain taxed at the capital gains rate, not as ordinary income.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

We will see if/when bonus depreciation goes back to 100%. 

An uptick may be due to the decrease in bonus depreciation by 20% in the new year.

A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

The seller converted one of the garages into a bonus room and it added 300sqft under AC.

I pay them a very nice bonus at the end of the year, so realistically it's probably more like $35/hr, so my labor cost for the job would be around $7,000.   

Quote from @Melanie Baldridge: Newton's law of tax: What goes down must come up.Everyone enjoys the sweet benefits of bonus depreciation, but what happens when you sell?

TIAGlad to see you’re taking advantage of bonus depreciation.