Originally Posted by
sailingfun
As long as they can as a couple meet the test for active participation in the business they will have no issues with the IRS. Those running into audit problems usually are actually passively involved and can't use the depreciation against other income like Delta earnings. Depreciation does however have to be recaptured at some point. Lots of ways to delay that but the bill does come due.
Ok, I didn't mean to cast despersions on the bonus depreciation strategy as illegitimate. If you can qualify for "material participation" and your "cost segregation survey" even makes it worthwhile then then this years' 60% bonus depreciation may be useful to you. In my case it was not. And in any case you must recapture that depreciation later anyway, of course.
Just don't try to fudge your way into something that you will probably have to justify at, IMO, an almost inevitable audit.