I constantly meet CRE investors who've spent a fortune on energy efficient HVAC systems, LED lighting upgrades, and windows (all the good stuff) and then they leave tens of thousands of dollars in tax deductions sitting on the table. Why? Because they don't realize that two of the most powerful tax strategies available to commercial property owners can actually work together . I'm talking about Section 179D , the Energy-Efficient Commercial Building Property (EECBP) tax deduc

When you reinvest into your business for equipment upgrades, you might think you can write off the entire cost right away. However, the IRS typically wants you to spread out those deductions over several years, which means your tax benefits are divided over the asset's "useful life." The Section 179 deduction changes that equation entirely. This tax code provision allows eligible businesses to deduct the full purchase price of qualifying assets in the year they're placed in

Depreciation recapture is a tax provision that can catch many investors off guard when selling an asset. Essentially, it requires you to pay taxes on the portion of your gain that corresponds to the depreciation deductions you've claimed over the years. This is treated as ordinary income, often at a rate of up to 25%, rather than the lower long-term capital gains rate. While this is a common aspect of IRS regulations for assets like rental properties, business equipment, or v

100% Bonus depreciation is back! It took months of political maneuvering and nail-biting votes, but House Republicans have achieved what many thought impossible... Passing President Trump's " One Big Beautiful Bill ." The comprehensive tax and spending package that cleared Congress, and with it comes an awesome opportunity for real estate investors across America. Hard Fought Victory of 100% Bonus Depreciation I might be biased but among the most significant provisions for bu

Do your own cost segregation, they said. It'll be easy, they said. So you're trying to calculate your depreciation deductions correctly, and suddenly you hit a wall... How much of what you paid for your condo is actually the land underneath it? It's one of those questions that sounds simple until you realize you own a unit in a building with thirty other people, and nobody's exactly carved up the dirt with property lines. Calculating your land allocation isn't nearly as com

When you hear the term cost segregation , you might picture accountants buried in spreadsheets. But the true champions of cost...

When I first dipped my toes into real estate, I started where most people do, with single-family rentals. While they have their place, it...

When it comes to getting the most out of your tax deductions, business owners and real estate investors can find themselves weighing the pros and cons of Section 179 versus Bonus Depreciation. Both options allow for accelerated deductions on qualifying assets, but they function in very distinct ways and lead to different results based on your income, the type of entity you have, and your investment objectives. This article will help you navigate the differences in Section 17

When it comes to managing investment properties, one significant decision you'll encounter during tax season is whether to capitalize or...

The Rise of Online Cost Segregation Cost segregation has long been a powerful tax strategy for real estate investors, allowing them to accelerate depreciation and reduce taxable income. In the past, these studies often involved travel for in-person inspections, heaps of paperwork, and long wait times. But everything shifted during the pandemic. With fewer onsite visits and remote cost seg processes taking over, many cost segregation companies transitioned their services onli

For real estate owners of rentals, a roof replacement is likely to come up as a property upgrade... While the primary role of a roof is...

Top Considerations Explained | Cost Segregation Analysis Is the juice worth the squeeze? If you’re holding real estate and not using cost...

Why Smart Self-Storage Owners Don’t Wait on Cost Segregation. You didn’t invest in self-storage for slow returns. Whether you’re building...

When it comes to getting the most out of your tax deductions in real estate, every little detail counts. One often-missed but incredibly...

When you invest in real estate, understanding how your assets depreciate isn’t just an accounting formality... it’s a crucial strategy for managing your taxable income and boosting your cash flow. One of the simplest ways to depreciate rental properties is through a method known as straight line depreciation . In this article, we’ll guide you through what straight line depreciation is, how to calculate it, and how it stacks up against other depreciation methods in the world

Right before the pandemic hit, I took the plunge and bought my first commercial property, a cozy mixed-use building with retail space on...

Qualified Improvement Property (QIP) is an important tax category that affects how businesses handle the depreciation of certain...

Let me share something that many real estate investors never realize, but it could save you tens of thousands in taxes starting this...

A depreciation schedule is a comprehensive accounting record that monitors the gradual decline in value of an asset throughout its useful life. For real estate investors, these schedules serve as valuable tax tools, enabling you to deduct the cost of income-generating properties over time, which can significantly lower your taxable income without impacting your cash flow. Depreciation Basics Depreciation refers to the wear and tear, deterioration, or obsolescence of propert

I've put together a detailed guide that covers 1031 exchanges and how they can be effectively paired with cost segregation . Let me...