@Helpless4 wrote:
Thanks @Anonymous_
I recall the question as to whether I took an active role being asked, and I did select "yes." Perhaps this exception does not apply to special depreciation, and special depreciation cannot be deducted from regular income at all.....
The exception for active participation does, indeed, apply to bonus depreciation.
The problem is you might be running into the $25,000 loss limitation. You can use up to $25,000 in net rental losses to offset your other income and then any excess above $25,000 is carried forward to the next tax year.
For example, if you had total rental losses of $60,000, $25,000 could be used to offset your other income and the remaining $35,000 loss would be carried forward to the 2023 tax year.
The bottom line here is simply that you will not gain anything by using straight-line depreciation.
