100% Bonus Depreciation Is Back. For Most of Your LPs, That Changes Nothing This Year.
The rate returning is not the same thing as the deduction being useful. Whether bonus depreciation actually reduces a partner's tax bill comes down to passive income position, real estate professional status, and outside basis — none of which live in your deal model.
Read articleYour Fund Can Owe a Tax Return Without Owing a Dollar of Tax
A state tax return and a state tax bill are two separate obligations. Residency filing requirements can force your fund to file in states where it earns nothing — and the penalty for a missed zero-dollar return is calculated per partner, per month.
Read articleYour Exit Tax Bill Is Bigger Than You Think
Most operators model the whole gain at 15 to 20 percent and move on. The problem is that model is wrong, and the gap between that number and your actual tax bill can be six figures. Here's what's actually happening inside a sale.
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