The new permanent bonus depreciation regime will bring back the old playbook: lever up to buy a rental property and bonus depreciate everything under the sun. But the tax savvy general partners know that WHEN to depreciate is just as important as how to depreciate.
Lessons Learned from the Tax Court: The Root of the Issue
Matt Metras, EA
When is a business really a business? As Supreme Court Justice Potter Stewart said in 1964, “I know it when I see it.” The US Tax Court, however, maintains a slightly less subjective standard. The Roots were pretty sure they were running a bona fide business; the IRS, however, didn’t share the sentiment. And since we’re reading about them in a segment called “Lessons Learned,” one should assume it did not go the way the Roots would have liked.
