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We provide a customized tax strategy for real estate investors through:

• Depreciation & Cost Segregation:
  • Cost Segregation: Reclassify building components (carpets, fixtures) to be depreciated over 5, 7, or 15 years instead of 30 years, front-loading deductions.
  • Bonus Depreciation: Fully deduct costs for qualified property in the first year, a benefit restored in 2026 by recent legislation.
• Deferring Capital Gains:
  • 1031 Exchange: Swap investment properties for "like-kind" properties to defer capital gains tax.
  • Qualified Opportunity Zones (QOZs): Reinvest capital gains into designated distressed areas for tax deferral and potential elimination.
• Maximizing Deductions:
  • ** Deductible Expenses: Claim all legitimate business expenses, including mortgage interest, property taxes, insurance, management fees, and professional services.
  • Real Estate Professional Status: Qualify for non-passive treatment of losses if you meet strict time requirements, allowing deduction against other income.
  • Qualified Business Income (QBI): Eligible individuals can deduct up to 20% of their QBI.
• Strategic Timing & Structure:
  • Accelerated Expenses: Pay for certain expenses before year-end to maximize current deductions.
  • Entity Choice: Use LLCs, S-Corps, or REITs to optimize tax liability and asset protection.
• Retirement & Exit Planning:
  • Self-Directed IRAs: Invest real estate within retirement accounts for tax-deferred growth.
  • Strategic Sales: Plan for depreciation recapture and use installment sales to spread out tax recognition.

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