05/28/2026 - Slash Taxes Keep More Profit

This Financials Call focused on advanced tax strategies real estate investors can use to reduce 2025 tax liability, maximize deductions, and improve cash flow. The discussion covered cost segregation, bonus depreciation, Form 3115, repair expense strategies, COVID-related IRS refund claims, and tax-saving opportunities tied to software development and operational expenses.

Key Topics & Takeaways

• COVID-19 IRS refund opportunity
  • How investors may qualify for refunds on IRS penalties and interest assessed during COVID
  • Filing protective claims before the July 10, 2026 deadline
  • Risks of paying excessive upfront contingency fees for refund filings
• Cost segregation and bonus depreciation strategies
  • Timing cost seg studies to maximize deductions against high-income years
  • Understanding updated bonus depreciation rules for 2025 properties
  • Why Real Estate Professional status matters for offsetting active income
  • Using depreciation strategically instead of automatically taking it upfront
• Maximizing immediate rehab and repair deductions
  • Using the de minimis safe harbor to expense items under $2,500
  • Leveraging the routine maintenance rule for larger repairs
  • Applying the small business taxpayer election for accelerated write-offs
  • Avoiding future depreciation recapture through smarter expense treatment
• Retroactive tax savings with Form 3115
  • Correcting missed depreciation without amending prior returns
  • Pulling prior-year deductions into current-year income offsets
  • Using accounting method changes strategically for high-income years
• Partial dispositions and carrying cost deductions
  • Writing off the remaining value of replaced roofs, HVACs, and major components
  • Using the 263A small business exception to expense carrying costs immediately
  • Improving short-term cash flow by accelerating deductions
• R&D tax credits for real estate businesses
  • Qualifying for credits when developing CRMs, software, or AI tools
  • Why R&D credits create dollar-for-dollar tax savings
  • Importance of time tracking and documentation for eligibility
• Strategic tax planning for investors and operators
  • Why investors should extend tax returns for post-year-end planning flexibility
  • Starting proactive tax planning in August instead of waiting until year-end
  • Using tax strategy to guide decisions like converting flips into rentals
  • Aligning accounting methods with long-term business goals
• Actionable implementation ideas
  • Review books for immediate expensing opportunities
  • Evaluate missed depreciation opportunities from prior years
  • Explore REP qualification and bonus depreciation timing
  • Audit operational software and AI development for R&D credit eligibility
  • Coordinate with tax advisors early to reduce year-end surprises