What bonus depreciation on a multifamily property? How is it considered poor man’s 1031 exchange?

Good question.

In many cases arranging a 1031 exchange on a multifamily property is not possible. However, one benefit that is available to limited partners that miss out on a 1031 exchange is bonus depreciation.

By using cost segregated depreciation instead of standard straight line depreciation, you can obtain a tremendous amount of depreciation and basically achieve a result that somewhat resembles a 1031 exchange. This is why bonus depreciation (accelerated cost segregation depreciation) is so beneficial.

It is critical to have an experienced general partner to make sure that the K1 tax forms are done properly but this is a great tool for limited partners that miss the 1031 exchange window.

I offer education and training to landlords, engineers, doctors and dentists, and many others that would like to learn how to enjoy the benefits of multifamily as quickly as possible. If that sounds interesting contact my office by going to www.benjaminzmiller.com and fill out the contact form.

You also can register at meetup.com at the link below:

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com
1-817-203-4160
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