Break Of Day Capital

Bonus Depreciation & the Recapture: What Investors Should Know

Bonus Depreciation & the Recapture

đź’ˇ Summary Bonus depreciation in multifamily investing lets investors take large upfront tax deductions by accelerating property depreciation through cost segregation. While depreciation recapture applies when a property sells, the initial savings usually outweigh the later taxes owed. By using tools like a 1031 exchange or reinvesting in new syndications, investors can often defer or … Read more

Unlocking Tax Benefits Through Real Estate Professional Status and Material Participation

Realtor, real estate professional

đź’ˇ Summary: Real Estate Professional Status (REPS) allows investors to convert rental losses from passive to non-passive, enabling them to offset W-2 or business income. By meeting the 750-hour and “more time in real estate” requirements, and combining this with material participation rules—or leveraging syndication exceptions—investors can maximize tax benefits. In particular, REPS enhances the … Read more