Cost Segregation & Depreciation Recapture Explained

About this episode

The episode covers cost segregation studies, depreciation recapture, and various tax strategies for real estate and investments.

In this episode of Tax Tuesday, Anderson Advisors' Barley Bowler, CPA, and Eliot Thomas, Esq., answer listener questions covering a broad range of real estate, retirement, and investment tax topics. They break down cost segregation studies and depreciation recapture, explaining how bonus depreciation accelerates deductions and how 1031 exchanges and stepped-up basis can help investors defer or eliminate gain entirely. They address whether vacated rental rooms can qualify as deductible office space, and walk through how multi-state 1099 income is taxed when a worker performs services in Kansas for California patients through a Utah company. Barley and Eliot also clarify how MAGI determines the taxable portion of Social Security benefits in retirement, and confirm that qualified retirement plan distributions are protected from California taxation once a taxpayer has established residency in Nevada. Additional topics include 529 college savings plans for children attending accredited foreign universities, combining Roth IRAs with a payroll strategy for minor children, when Schedule E versus Schedule C applies to short-term rental income, and the significant hurdles of qualifying for…

People in this episode

Host: Anderson Advisors

Guests: Barley Bowler, Eliot Thomas

Topics covered

• cost segregation
• depreciation recapture
• tax deductions
• 1031 exchanges
• retirement planning
• Roth IRAs
• Trader Tax Status

Keywords

• cost segregation
• depreciation recapture
• bonus depreciation
• tax deductions
• 1031 exchanges
• MAGI
• Social Security benefits
• 529 college savings plans
• Trader Tax Status

Mentioned in this episode

Places: California, Kansas, Utah, Nevada, foreign universities

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