How do you claim bonus depreciation? As I understand principal is not tax deductible but interest is for a real estate bysiuness purchase? Do you advise higher downpayment or lower since interest can be written off? Any real estate lawyer you advise to review terms
You'll need to sign in or create an account to connect with an expert.
Consult with a tax professional and a lawyer....https://www.martindale.com/real-estate-lawyers.
Bonus depreciation is for personal property and not real estate. Example would be a refrigerator you buy and use in your rental property.
Depreciation of any type, be it the bonus (Special Depreciation Allowance), SEC 179 or regular, has nothing to do with principle, interest, down payments, or anything of that nature. It has everything to do with $value$. Look, it's not like you learn this stuff through osmosis. yet it's also apparent you are attempting you educate yourself so you can make an informed decision. Smart move. But a public user-to-user forum such as this is not your best move. Many unwittingly attend a special school to learn it.... the school of hard knocks. I have multiple degrees from that one. 🙂
Also understand that any type of depreciation is not a permanent deduction. What may save you money now, can and will cost you more later. Sometimes as much as 3 times more. Google can be your friend. Or even better, you can find a tax professional with the heart of a teacher. You really need to educate yourself on this, but do it a better way...... not at the same school I attended. Way to costly and makes the cost of a professional educator seem like a pittance in comparison.
Thanks, I appreciate the advice 🙂
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
msthrifty
Level 3
ElMendo
Level 2
ElMendo
Level 2
Fund247
Level 1
Ahawk
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.