Bonus depreciation doesn’t count against your income calculation.

It creates shopping lists and little bonuses like that so it has a few more things than the spreadsheet that comes with your Flipping/Estimating books.  

The main house is completed and as far as labor, I spent $40,000 on just labor and that includes everything from full gut demo to finishes.We are talking about a 4BD, 3BTH two story 2400 ft.² home with a bonus room.This was a full gut job, replaced…12 Windows (new construction)2 sliding doorsTook out all carpet throughout.Took out this ugly 2” thick tile from half of the downstairs portion.Removed popcorn throughout the entire houseTook one wall downA little framing workReplaced entry door 80” x 92”Drywall patchingSmooth drywall work50 recessed lightingAll electrical neededAll plumbing neededNew cement walkway instead of one walk to the front door I created two steps with two lights in each step.Install kitchen cabinets, excluding countertopInstall all three vanities3 bathtubs with one being a modern standalone tub in the masterAll tile work (bathroom wall & floor, kitchen backsplash)Installing of all hardware, faucets, showerheads, etcInstalled 8 single panel doors with hardwareAdding self-leveler after tearing out that thick tileNew LVP flooring throughout the entire house except bathrooms,all baseboards, trimsPainting the entire house, painting all the doors, painting the outside trim.Reframing the outside balconyReframing the fireplace to install new linear modern electrical fireplaceand they took care of the two trash bins.I mean, completely redone.The only thing that was not included in the $40,000 is landscaping, counter top cut and install and of course the ADU which I’m currently working on now.So my question for my fellow investors and contractors did I pay too much?

It's available on BiggerPockets bookstore and comes with a ton of bonus content, too!

Other times, capital is tied up (like 1031 funds or from a previous sale or expected bonus, or timing for w2 to season or 1099 self employed to season..) for a few months.

If I don't get paid at least 92% pf the rent, for any reason, there is no bonus. 

Hey all, we recently did a cost seg & bonus deprecation on our STR for about $180k worth of deprecation. 

took bonus deprectiation of $100,000 as well.

Added bonus would be being able to operate out of a savings account to allow some interest income on my reserves. 

Here’s an example of bonus depreciation.HOW CAN I USE THIS AS A PLANNING TOOL?