@zeldablack1979 wrote:
1. If I do this my understanding is I would be able to take all the first year bonus depreciation to offset my w2 wages and ira distribution that is taxable (but still pay10% penalty). Is this correct?
You might be thinking of the special allowance for rental real estate activities and should note that there are income limitations (based on MAGI).
See https://www.irs.gov/instructions/i8582#en_US_2021_publink1000278149
If the rental scenario you are contemplating does not rise to the level of a trade or business, then any net loss you sustain will be subject to the passive activity loss rules (PALs).
If this is not a trade or business and you do not otherwise qualify for the special allowance (mentioned above), then your net losses will be suspended until they can be offset with passive income or you sell the property.
