7 – Section 179
Section 179 Losses
We’ve discussed the “lazy 1031 strategy” previously, and if you’re paying close attention, you’ll notice it’s likely the best approach for most people moving forward. To help you take the next steps, we wanted to provide some additional context and a clear action plan for implementing this strategy effectively.
Lesson summary
This lesson builds on the lazy 1031 strategy covered earlier in the course: you sell, buy new investments in the same tax year, and use passive losses to offset the gain instead of doing a formal exchange. Here I cover ways to create more of those losses. One is qualifying for real estate professional status. Another is investing in deals that produce large passive losses. A third is equipment, such as ATM funds and heavy machinery, where depreciation can be taken quickly under Section 179 and bonus depreciation rules. I close with how these can be combined and a practical plan for someone facing a large capital gain. Depreciation rules change often and whether you can use these losses depends on your situation, so check with your CPA before you invest.
This is educational content, not tax, legal, or investment advice. We are not attorneys, CPAs, or financial planners. Please let us know if you need a referral to a CPA, lawyer, or other vendor here.
Discover how to leverage passive income from real estate, equipment investments like heavy machinery (essentially section 179 losses) to strategically reduce your taxable income.
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