You have rentals, flips, or both. You hear about cost seg, 1031, and REPS, but your CPA shrugs. We build the strategy, run the depreciation, and keep your portfolio IRS-clean year-round.
Most landlords leave $10K to $60K per property on the table by missing accelerated depreciation, mishandling passive losses, or fumbling a 1031 timeline. We work the IRC the way it was written.
We carve your building into 5, 7, and 15-year property buckets so you front-load depreciation in years 1 to 5 instead of waiting 27.5 or 39 years. A $500K rental can throw off $80K to $120K in first-year deductions when paired with bonus depreciation.
IRC §168(e), §168(k); Rev. Proc. 87-56; HCA v. Commissioner45-day ID window. 180-day close. Qualified intermediary required. We map the chain, vet the QI, and keep boot off your return so the entire gain defers. One sloppy email kills the deferral. We don't send sloppy emails.
IRC §1031; Treas. Reg. §1.1031(k)-1Rental losses are passive by default and capped against passive income. We document grouping elections, $25K active-participation allowance (phases out $100K to $150K MAGI), and stack losses so they actually offset something instead of suspending forever.
IRC §469(c)(2), §469(i); Treas. Reg. §1.469-9The 750-hour rule plus more-than-half-of-personal-services test. Get it right and your rental losses become non-passive and offset W-2 or business income. Get it wrong and the IRS disallows everything. We keep contemporaneous time logs that survive audit.
IRC §469(c)(7); Treas. Reg. §1.469-5TSchedule E line-by-line. Accumulated depreciation. Recapture reserves. We build a per-property fixed asset register so when you sell, you know the §1250 recapture before you sign the contract, not after.
IRC §1250; §168; Form 4562Flippers pay ordinary income + self-employment tax. Investors pay long-term capital gains. The line is intent and hold period. We structure entity, hold period, and activity to defend the position you actually want.
IRC §1221; §1402; Suburban Realty v. USOrlando investor, 6 doors, $1.8M portfolio. We ran cost segregation on three properties acquired in 2023 to 2024 and qualified the spouse for REPS.
$94,300 savedFederal tax reduction in tax year 2024 vs. their prior CPA's straight-line approach. Audit-ready documentation included.