1031 Exchange Depreciation Explained: What Happens After You Buy a New Rental Property?

In this Tax Tuesday replay, Anderson Business Advisors’ Barley Bowler, CPA, and Eliot Thomas, Esq. answer real-world tax questions on Roth IRA conversions, investing in real estate with retirement accounts, and depreciation after a 1031 exchange. How can you estimate the tax impact of a Roth IRA conversion before filing your 2026 tax return? Is buying real estate through an HSA, traditional IRA, or Roth IRA a smart investment strategy—and what tax rules, advantages, and potential pitfalls should you understand before moving forward? Plus, how is depreciation calculated after a §1031 exchange when you sell a rental property and acquire a replacement property? Barley and Eliot break down these questions and explain the tax considerations investors and business owners should keep in mind when planning their next move.   Would you like to learn more about passing down your estate? Schedule a free consultation here: https://aba.link/b51702  Register for the next Tax Tuesday webinar to get your questions answered Live: https://aba.link/9e733b  Register for an upcoming workshop today if you want to protect your business and personal assets from snoopy lawyers and creditors. Save Your Seat: https://aba.link/7c2c4d    Show Notes: 0:00 Intro 9:05 When I convert a Roth IRA this year how do I determine the accurate tax impact from the conversion amount before filing the 2026 tax return? 20:18 Is it a good idea to buy real estate using your HSA, IRA, or Roth IRA accounts? What are some pros and cons and how should I proceed? 35:51 How is depreciation calculated going forward after a §1031 exchange following the sale of a rental property and purchase of a new one? 43:41 I am planning to use a HELOC from my personal residence and use the funds for my trading activity. Can I deduct the interest as investment interest under Form 4952 if I loan the money to my LLC, and what counts as "net investment income"? 1:04:05 I will have a tax loss carryforward if I elect to use Section 475(f) mark-to-market accounting method. What types of income can I offset? 1:08:51 I currently have a Living Trust that ABA set up in Wyoming, as well as an LLC. I put all my cryptocurrencies into the LLC. Is this the best way to mitigate my taxes? I paid about $2.00 per share and the value is growing substantially. What other options might be better than the LLC? 1:12:42 Is there a way to organize and structure an entity to trade a taxable account and be able to defer taxes until a cash withdrawal?