Real estate is the deepest tax-code lane in the IRC. And the most-under-used.
Cost segregation. STR loophole. 1031 exchange. Real estate professional status. Section 1202 QOZ. Bonus depreciation phase-down. Every one of these is a real provision with specific qualification rules, documentation requirements, and dollar impact. Most CPAs touch 2 of them. Real estate investors who run all of them save 5-6 figures a year.
Real estate is the highest-leverage tax-strategy lane in the entire tax code. The moves exist. The documentation requirements are real. The IRS has explicit rules. Most real-estate-investor tax returns get only the easy moves — Schedule E filed, depreciation taken on the default schedule, no cost seg, no STR positioning, no REPS analysis, no 1031 planning. The articles in this category cover each move in detail: when it qualifies, what documentation has to exist, how to model the dollar impact, and what the audit-defense story looks like.
5 clusters. Articles grouped by what you're actually trying to solve.
Each cluster covers one operational area in depth. Articles within a cluster reinforce each other; clusters cross-link between categories where the topics overlap.
Cost Segregation
1/4 liveMechanics · ROI math · when worth it · look-back studies · bonus depreciation phase-down · partner vs. in-house
STR Loophole
1/4 liveMaterial participation · documentation · 7-day average stay · qualifying activities · W-2 offset rules
1031 Exchange
2/4 liveLike-kind rules · 45/180-day timing · reverse exchanges · partial exchanges · boot · DST as exchange property
REPS (Real Estate Professional)
1/4 live750-hour test · more-than-half test · married couples · time logs · grouping election · W-2 income offset
RE Entity Structure
0/4 liveLLC titling · multi-property · series LLC · S-corp-for-RE (don't) · partnership for multi-owner
10 articles in Real Estate
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Bonus Depreciation for Rental Property in 2026
The OBBBA made 100% bonus depreciation permanent. For most W-2 rental investors, a $120,000 cost seg deduction produces zero immediate savings because passive loss rules suspend it. Here is the passive loss wall, the three paths through it, and what recapture costs you when you sell.
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Passive Activity Loss Rules for Real Estate Investors
Most rental losses are trapped by IRC §469 and can't offset your W-2. Three escapes exist: the $25K allowance, real estate professional status, and the short-term rental loophole.
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Depreciation Recapture When You Sell a Rental Property
Most rental sellers don't see the §1250 recapture tax coming until closing. Here's how to calculate what you'll owe and how a 1031 exchange or installment sale can defer it.
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OBBBA and Real Estate: Every Change That Affects Investors
OBBBA didn't change Section 1031 or REPS rules, but it changed almost every other real-estate-related tax provision. Here's the consolidated picture — what's new, what's permanent, what's temporary.
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OBBBA Made Opportunity Zones Permanent + Created the New Rural OZ
Opportunity Zones became permanent under OBBBA and a new Rural OZ category got created with enhanced benefits. The QOZ program is now indefinite, with redesignation every 10 years.
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1031 Exchange Mechanics: The Like-Kind Rules in Plain English
1031 exchange is the IRC's most-used real-estate tax-deferral tool. Done right, it defers 100% of capital gains. Done wrong, the entire deal becomes taxable. Here's the practical guide.
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The STR Loophole: How to Qualify (and the Documentation That Actually Holds Up)
Short-term rentals can offset W-2 income directly — but only with airtight material participation documentation. Here's how the rules actually work and what the file has to look like.
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REPS Qualification: The 750-Hour + More-Than-Half Tests Explained
REPS is the highest-leverage real estate tax position available — but the tests are strict and the IRS audits aggressively. Here's the exact qualification rules + the documentation that defends the position.
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Cost Segregation Fundamentals: How the Study Actually Works
Most rental owners depreciate the entire property over 27.5 years and leave $30K-80K of year-one deduction on the table. Cost segregation fixes that. Here's the mechanics + the ROI math.
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1031 Exchange Timing Rules: The 45-Day + 180-Day Math Without Mistakes
The 1031 exchange's two deadlines are the #1 cause of failed exchanges. Both clocks start the same day. Both end with no extensions. Here's the math + the operational discipline to hit both.
If Real Estate fits your situation, here's where to go next.
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