Standard residential and commercial real estate depreciates over 27.5 or 39 years. Our engineering-backed Cost Segregation Studies dissect your property into 5, 7, and 15-year components�including specialized lighting, paving, cabinetry, and HVAC controls�allowing you to capture massive bonus depreciation upfront and offset active income.
Passive loss limitations are the biggest hurdle for high-income property investors. We implement meticulous time-tracking protocols and strategic entity structuring to help you or your spouse qualify for Real Estate Professional Status (REPS). By combining REPS with aggressive cost segregation studies, we transform restricted passive losses into ordinary deductions that can offset your W-2 or business income.
By validating your material participation, we unlock hundreds of thousands in paper depreciation losses to shield your active, high-bracket income.
Immediate paper loss generation to offset rental income or active W-2/business income under REPS.
Defensible time-tracking documentation and aggregation elections under IRC Section 469(c)(7).
Seamless deferred capital gains structuring when rolling proceeds into replacement commercial or multifamily assets.
Invest realized capital gains into Qualified Opportunity Funds (QOFs) for long-term tax elimination.
Deferring capital gains indefinitely by structuring compliant property swaps and identifying optimal replacement assets.
Advising on Qualified Opportunity Fund (QOF) investments to defer and potentially eliminate capital gains taxes on long-term holdings.
You must spend more than 50% of your working time AND at least 750 hours per year in real property trades or businesses in which you materially participate (typically 500+ hours specifically on your own rentals).
Yes. Under the 'Short-Term Rental Loophole,' if the average stay is 7 days or less, the property is not considered a 'rental activity' under Section 469. If you materially participate, losses can be non-passive even without REPS.
When you sell a property, the IRS 'recaptures' the depreciation you previously deducted, taxing it at a maximum rate of 25%. We use 1031 exchanges to defer this recapture indefinitely.
Speak directly with a senior tax strategist specializing in your industry's exact regulatory codes and deduction opportunities.
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