100% Bonus Depreciation Is Back Permanently (And Most High-Income Professionals Still Don't Know It)

Michael ChangJul 3, 202632m 23s143 viewsScore 85
Regulations & Compliance
advanced
bonus depreciation
STR tax loophole
high-income professionals
tax strategy
real estate investing
M

Summary

AI-generated

High-income professionals can leverage the permanent 100% bonus depreciation for short-term rentals to legally offset active income. This strategy, detailed by a CPA, requires careful documentation and a long-term holding strategy to maximize benefits and avoid depreciation recapture.

Key insights

  • Holding a short-term rental property long-term is crucial to avoid significant costs from depreciation recapture when selling the asset too soon.

Mistakes to avoid

  • Purchasing a short-term rental property solely for tax benefits without proper due diligence on its cash flow potential can result in owning a 'losing horse' property that drains finances.

Tools & resources

  • Tax Strategy 365service

    Tax Strategy 365 is a CPA firm founded by Ryan Bakke, specializing in helping high-income professionals with tax strategies, including those related to short-term rentals.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial