Tax Day Q&A: Depreciation, Deductions, and Dodging Capital Gains
Summary
AI-generatedThis episode breaks down complex real estate tax topics, including depreciation strategies, capital gains tax implications for primary residences, and the benefits and drawbacks of cost segregation studies. Hosts and guests discuss how to optimize tax savings for investors, especially those with short-term rentals and side hustles.
Key insights
There is typically a 5-7 year cycle to rental syndications, due to the cost segregation done to create large write-offs and the ability to roll this out when the assets is disposed of.
Mistakes to avoid
Be aware that the 2 out of 5 years of primary residence rule for capital gains exclusion has an all or nothing component. If you are selling before 2 years, review the exception rules for work, health, or unforeseen circumstances.
Tools & resources
BiggerPockets Tax Pro Directorywebsite
Directory of tax professionals.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial