@Rick19744 @Carl @Mike9241 @M-MTax
The straight-line depreciation will exactly cover all the income I will receive on the investment over the 5 year depreciation period with federal, OK, and OH. Doing bonus depreciation will obviously cancel all tax liability initially for federal and OK on the investment, and will get me money back from the IRS on taxes I have paid in this year on wage income, but I will owe taxes on all the investment income for the first year in Ohio because I will have no depreciation deduction for the first year. Additionally, since I can only take 1/6 of the bonus depreciation in subsequent years on my Ohio return, the depreciation will not be enough to fully cover the income received during those years on the investment and I will have to pay some taxes each year in Ohio. I would prefer to defer taxes as long as possible (5 years). Also, I will be moving to TN within the next two years (no income tax state), so I really don't want to be paying Ohio any taxes on this investment before the move if I can help it. Does this reasoning make sense, or am I missing something here? Any additional comments or suggestions are welcome.
