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16 December 2024 | 0 replies
Bonus depreciation is just a special part of the US tax code.It allows you to take accelerated depreciation on portions of your property depending on when an asset is put into service.At the time of this writing, you can write off a huge portion (60% in 2024) of many qualified components that have a useful lifespan of 15 years or less.That means a certain percentage of things like landscaping, sidewalks, latches, appliances, fences, certain flooring, etc is depreciable in year 1.The bonus depreciation rate percentage changes yearly depending on the administration and the tax code.For years 2015 through 2017 first-year depreciation for all the items on a 15-year schedule or less was set to 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019 and then 0% in 2020.But then Trump got elected, and he enacted the Tax Cuts and Jobs Act.That moved the bonus depreciation percentage to 100% from 2017 to 2022.In 2023 it went down to 80% and it’s currently at 60%.Depending on who gets elected again, 100% may be back on the table.Only time will tell.We know that the US government wants to incentivize more development and ownership of RE.They want Americans to continue to build and maintain our physical world.That’s why real estate is one of the most tax-advantaged assets in the US.Depreciation and bonus depreciation for RE are very positive and will likely continue in the years ahead.
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11 January 2025 | 420 replies
So, I had to put zeroes in to maintain the proper format.There's the first two 10-month "chunks".
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16 December 2024 | 1 reply
As large investors entered the market to acquire single family houses, our margins were squeezed and we ultimately could not maintain our target investor returns as the market totally changed.
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16 December 2024 | 21 replies
Otherwise, I am the guy who answers questions, texts guests etc.The key to self management is setting things up and maintaining.
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20 December 2024 | 19 replies
It will cost your money to get and maintain.
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18 December 2024 | 5 replies
I want to be a part of this market because I know I can offer tenants a well-maintained, up-to-code home.
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14 December 2024 | 2 replies
I have part of a 401K loan to payback and money borrowed against my HELOC.2) Maintain a yearly savings rate above 55% for 2025.3) Purchase another rental before the end of 2025.
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15 December 2024 | 2 replies
Also, can I stipulate in the lease that the tenant has to maintain the lawn and shovel the driveway and walkways, or am I required to pay a vendor?
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18 December 2024 | 17 replies
Generally we raise capital from investors who want a fixed income and have enough meat on the bone to keep all the equity in the deals and push the valuation and also obtain commercial financing where we can get 75-80% LTV financing and still maintain a DSCR of 1.2+2.)