Lot of $$ / Buy vs. Rent
11-07-2024 | 08:11 AM
#161
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Something to be said for simplicity and being content.
11-07-2024 | 10:07 AM
#163
Gets Weekends Off
Joined: Feb 2008
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The point was using your main residence as both your family home and a portion of your investment portfolio. It doesn't need to be a big house but can be a valuable house. Location is everything in Real Estate.
11-24-2024 | 04:30 PM
#164
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401(a) vs IRA
If you maxed out your 401(k) - should you throw the money into an IRA up to the $7,000 limit or the 401(a) (I won't hit the $69,000 limit). Doesn't seem like there will be a tax advantage of one vs the other, just having one in your 401(k) account to trade or having it in your IRA to trade
HSA is already maxed out btw
HSA is already maxed out btw
11-24-2024 | 05:10 PM
#165
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If you maxed out your 401(k) - should you throw the money into an IRA up to the $7,000 limit or the 401(a) (I won't hit the $69,000 limit). Doesn't seem like there will be a tax advantage of one vs the other, just having one in your 401(k) account to trade or having it in your IRA to trade
HSA is already maxed out btw
HSA is already maxed out btw
More money in tax havens isn’t the worst idea
11-24-2024 | 06:16 PM
#166
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11-25-2024 | 04:01 AM
#167
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From: Not an RJ driver anymore
If you maxed out your 401(k) - should you throw the money into an IRA up to the $7,000 limit or the 401(a) (I won't hit the $69,000 limit). Doesn't seem like there will be a tax advantage of one vs the other, just having one in your 401(k) account to trade or having it in your IRA to trade
HSA is already maxed out btw
HSA is already maxed out btw
11-26-2024 | 09:32 AM
#169
FlySmarterNotHarder
Joined: Feb 2006
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From: fifi flyer
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.
Just don't try to fudge your way into something that you will probably have to justify at, IMO, an almost inevitable audit.
11-26-2024 | 12:51 PM
#170
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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.
Just don't try to fudge your way into something that you will probably have to justify at, IMO, an almost inevitable audit.
2) IRS assumes you took depreciation even if you didn't. You will pay depreciation recapture regardless. The only option is bonus or accelerated depreciation.
3) Having taken millions in depreciation over 20 years of RE ownership, I've never been audited. My time is due, but with accurate depreciation schedules my CPA says it's about as exciting as a V1 cut in the sim.
Last edited by Gunfighter; 11-26-2024 at 01:03 PM.
