If you have self-directed accounts and are your own custodian, this burden is on you.Use your employer's tax-advantaged benefits.

Is there a way to take advantage of these deductions while I'm still residing in the home?

While the real estate market usually slows down this time of year, we are seeing a lot of buyers taking advantage of homes that have been sitting on the market longer.

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.

This led me to container home development.Key Market Factors:Senior housing demand is outpacing supplyTraditional construction costs are skyrocketingFixed-income seniors need affordable optionsSustainability is becoming a critical factorThe Container Home Advantage:20-40% lower construction costsSignificantly faster build timeDurable steel constructionHighly customizableLower maintenance costsSustainable/recyclable materialsI've already completed one container home conversion and several studio/guest houses.

So, pursuing litigation has its advantages.

This strategy takes advantage of forced appreciation & favorable primary residence financing. 

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

Borrowing against equity offers benefits like appreciation and tax advantages, while selling with a 1031 exchange allows deferral of capital gains taxes and reinvestment into new rental properties.

You can also take advantage of lower down payment loan products rather than going 20-25% down on a conventional investment loan.