Depreciation guidance
Depreciation is the largest non-cash deduction in most real estate portfolios — and the area where the right CPA pays for themselves many times over. Residential rentals depreciate straight-line over 27.5 years; commercial over 39. Cost segregation studies reclassify 20–35% of basis into 5, 7, and 15-year property, pulling huge deductions into year one and pairing well with bonus depreciation.
- Cost segregation studies for properties over ~$500K basis
- Bonus depreciation strategy (60% in 2024, stepping down)
- Section 1250 recapture planning at sale and via 1031
- Short-term rental (STR) loophole and material participation
