 Extra Depreciation: TaxCu (by Beth [WI]) Apr 24, 2019 12:51 PM
 Extra Depreciation: TaxCu (by Marv [IL]) Apr 26, 2019 5:48 AM
Extra Depreciation: TaxCu (by Busy [WI]) Apr 26, 2019 6:40 AM
Extra Depreciation: TaxCu (by Beth [WI]) Posted on: Apr 24, 2019 12:51 PM
Message:
Can someone explain to me how the extra depreciation from Trumps Tac Cut and Jobs Act works? As I understand it, one normally takes 1/27 the value of approximately 80% of the value of a rental each year for 27 years. So for a midwestern building with a purchase price of 100k, one will depreciate roughly 3K per year for 27 years. The bonus depreciation now allows for the remaining 20% or 20K to depreciated in the year of purchase.
Does that bonus depreciation act to reduce both your rental income and W2 income? What about capital gains on stocks sold? What happens if the extra depreciation amount exceeds your income?
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Extra Depreciation: TaxCu (by Marv [IL]) Posted on: Apr 26, 2019 5:48 AM
Message:
When you depreciate a residential rental building it is over 27.5 years. No additional depreciation allowed.
When you depreciate a lawn mower bought to maintain property, you can use additional first year depreciation to deduct 100% of the mower. You can opt out of this additional depreciation if you don't need the deduction in the current year. Watch out for your state depreciation. Some states do not allow additional depreciation and you will end up with two separate depr schedules and add ins and take out from state schedules. --173.15.xx.xxx |
Extra Depreciation: TaxCu (by Busy [WI]) Posted on: Apr 26, 2019 6:40 AM
Message:
Bonus or special depreciation does not apply to real property (27.5 year property.) --70.92.xxx.xxx |
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