It's always a good idea to consult with a tax professional or accountant to ensure that you're in compliance with the tax laws and maximizing your tax benefits.

They can help you assess your qualification as a real estate professional, structure your investments and businesses optimally, and maximize your tax benefits while ensuring compliance with tax laws.The ability to offset the $2.5 million bonus depreciation against your W-2 earnings will depend on your real estate professional status and other factors in your specific situation.

They can help you navigate the complexities of depreciation, ensure compliance with tax laws, and optimize your deductions.Conclusion:Real estate depreciation deductions are a powerful tool for investors seeking to enhance their financial returns and minimize tax liability.

However, it can also be applied to residential rental properties, particularly those with multiple units or significant common areas.The Process of Cost Segregation:The cost segregation process involves several steps:Property Inspection: A qualified engineer or cost segregation specialist conducts an on-site inspection to identify components that qualify for shorter depreciation periods.Component Classification: The specialist classifies various property components, such as HVAC systems, lighting, and landscaping, into the appropriate asset classes for accelerated depreciation.Cost Allocation: The cost segregation report details the allocated costs for each component, allowing for a more precise depreciation schedule.IRS Compliance: The report should adhere to IRS guidelines and regulations, ensuring compliance with tax laws.Why Engage a Professional:While it is possible to attempt cost segregation without professional assistance, it's a complex process that requires expertise in both construction and tax law.

If you can show that you met the IRS requirements based on available records and documentation, you should be in a good position.To address your concerns and ensure you are in compliance with tax regulations, it's a good idea to consult with a tax professional or accountant who specializes in real estate or short-term rentals.

If the seller's total gain from the sale of their primary residence is below $500,000, and they report the interest income correctly, they may not have any additional tax liability related to the sale of their home.As tax laws can be complex and subject to change, it's advisable for the seller to consult with a tax professional or accountant to ensure they are in compliance with current tax regulations and to optimize their tax situation based on their specific circumstances.

Consulting with a tax professional or accountant who specializes in real estate can help you maximize your deductions and ensure compliance with tax regulations.Keep in mind that tax benefits should be just one part of your overall investment strategy.

Based on the compliance cost, you will want to work with an SEC lawyer to ensure you are structuring it properly so you avoid the securities laws.  

Unrelated to construction, I am also actively a private IT consultant to PriceWaterhouseCoopers, specializing in big data, cloud technologies, legal compliance, and audit controls (Assurance division), and am an experienced paralegal in the areas of corporate and bankruptcy law. 

The practical approach to compliance for note investors is to always use professional servicing for your notes.