Hi BP community, I have a unique homestead tax question.

I do have a follow up question, would we not save on taxes by doing a BRRR strategy vs buy and hold ?

Bonus depreciation is a tax incentive provided by the U.S. government to encourage business investment in tangible property.

There a ton of pitfalls that can just crush you. from bad tenants from hell to city regulations that are impossible to figure out to taxes to bad rehab jobs etc.

@Artur A. you're welcome.The general rule is you pay taxes in both Mexico and the US according to each country's tax code and then, courtesy of the treaty between the two countries for the avoidance of double taxation, you'd credit the taxes you paid in Mexico against your US taxes (related to the property only).If you invest in your own name or through a bank trust (fideicomiso), OTAs will withhold the tax to be paid to Mexico as a percentage of the gross income.

It equates to 60% down and a builder buy down of the rate plus closing help and it would still look like a bad investment to an outsider who didn’t know about the $100k in taxes I saved. 

I do know there's tax benefits and tenants paying the mortgage off for you.

@Rajshekar Manaliker I’m here in south Florida and we’re still moving and shaking with a good amount of incoming residents from income tax paying states

*NOT a tax expert/CPA!

Through depreciation, other income taxes are offset, through debt paydown and appreciation, he's going to gain $thousands per year in equity.Subjectively, it may appear not to be a deal, but if the buyer understands these factors and wants the property, an entry fee under $10K sounds like a deal.