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4.3 CRE Tax Strategy: Depreciation, 1031s & Cost Segregation

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Overview
Curriculum
  • 9 Sections
  • 35 Lessons
  • 36 Quizzes
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Why CRE Has the Best Tax Treatment in the US Tax Code
4 Lessons4 Quizzes
  1. Lesson 1.1: The Four Tax Advantages Stacked in CRE
    Preview
  2. Quiz 1.1: The Four Tax Advantages Stacked in CRE
  3. Lesson 1.2: Why a CRE Investor Can Show a Tax Loss While Generating Positive Cash Flow
  4. Quiz 1.2: Why a CRE Investor Can Show a Tax Loss While Generating Positive Cash Flow
  5. Lesson 1.3: Ordinary Income vs. Capital Gains, Why It Matters for CRE
  6. Quiz 1.3: Ordinary Income vs. Capital Gains, Why It Matters for CRE
  7. Lesson 1.4: Tax Strategy as a Return Enhancer, How After-Tax Math Changes Everything
  8. Quiz 1.4: Tax Strategy as a Return Enhancer, How After-Tax Math Changes Everything
Depreciation, The Engine of CRE Tax Benefits
5 Lessons5 Quizzes
  1. Lesson 2.1: How Depreciation Works, Cost Basis Allocation Over 27.5 or 39 Years
  2. Quiz 2.1: How Depreciation Works, Cost Basis Allocation Over 27.5 or 39 Years
  3. Lesson 2.2: Straight-Line vs. Accelerated Depreciation
  4. Quiz 2.2: Straight-Line vs. Accelerated Depreciation
  5. Lesson 2.3: Land vs. Improvements, Why Land Is Never Depreciated
  6. Quiz 2.3: Land vs. Improvements, Why Land Is Never Depreciated
  7. Lesson 2.4: Depreciation Recapture at Sale, The Hidden Tax at Exit
  8. Quiz 2.4: Depreciation Recapture at Sale, The Hidden Tax at Exit
  9. Lesson 2.5: How Depreciation Creates Paper Losses That Shelter Cash Flow
  10. Quiz 2.5: How Depreciation Creates Paper Losses That Shelter Cash Flow
Cost Segregation, Accelerating Your Deductions
5 Lessons5 Quizzes
  1. Lesson 3.1: What Cost Segregation Actually Does
  2. Quiz 3.1: What Cost Segregation Actually Does
  3. Lesson 3.2: The Four Categories, 5-Year, 7-Year, 15-Year, and 39-Year Property
  4. Quiz 3.2: The Four Categories, 5-Year, 7-Year, 15-Year, and 39-Year Property
  5. Lesson 3.3: Typical Cost Seg Results, What 20–30% Reclassification Means in Dollars
  6. Quiz 3.3: Typical Cost Seg Results, What 20–30% Reclassification Means in Dollars
  7. Lesson 3.4: Bonus Depreciation, The Current Phase-Down Schedule and OBBBA Restoration
  8. Quiz 3.4: Bonus Depreciation, The Current Phase-Down Schedule and OBBBA Restoration
  9. Lesson 3.5: The ROI of a Cost Segregation Study
  10. Quiz 3.5: The ROI of a Cost Segregation Study
1031 Exchanges, The Wealth-Compounding Machine
4 Lessons4 Quizzes
  1. Lesson 4.1: How a 1031 Exchange Works, The Mechanics
  2. Quiz 4.1: How a 1031 Exchange Works, The Mechanics
  3. Lesson 4.2: What Qualifies as Like-Kind, Broader Than Most Think
  4. Quiz 4.2: What Qualifies as Like-Kind, Broader Than Most Think
  5. Lesson 4.3: Boot, What Triggers It and How to Avoid It
  6. Quiz 4.3: Boot, What Triggers It and How to Avoid It
  7. Lesson 4.4: The Step-Up Basis Benefit, Why 1031 Into the Grave Is a Legitimate Strategy
  8. Quiz 4.4: The Step-Up Basis Benefit, Why 1031 Into the Grave Is a Legitimate Strategy
Passive Activity Losses, Unlocking the Full Benefit
4 Lessons4 Quizzes
  1. Lesson 5.1: The Passive Activity Loss Rules, Why Most CRE Losses Are Stuck
  2. Quiz 5.1: The Passive Activity Loss Rules, Why Most CRE Losses Are Stuck
  3. Lesson 5.2: The $25,000 Rental Real Estate Exception, For Active Participants
  4. Quiz 5.2: The $25,000 Rental Real Estate Exception, For Active Participants
  5. Lesson 5.3: Real Estate Professional Status, Unlimited Deductions Against All Income
  6. Quiz 5.3: Real Estate Professional Status, Unlimited Deductions Against All Income
  7. Lesson 5.4: Documenting Material Participation, Protecting Your Status in an Audit
  8. Quiz 5.4: Documenting Material Participation, Protecting Your Status in an Audit
Capital Gains Strategy, When and How to Exit
5 Lessons5 Quizzes
  1. Lesson 6.1: The Holding Period Rule, Why One Year Changes Everything
  2. Quiz 6.1: The Holding Period Rule, Why One Year Changes Everything
  3. Lesson 6.2: Installment Sales, Spreading the Gain Over Time
  4. Quiz 6.2: Installment Sales, Spreading the Gain Over Time
  5. Lesson 6.3: Qualified Opportunity Zone Funds, Deferral, Step-Up, and Elimination
  6. Quiz 6.3: Qualified Opportunity Zone Funds, Deferral, Step-Up, and Elimination
  7. Lesson 6.4: Short-Term vs. Long-Term, When the Math Changes the Holding Decision
  8. Quiz 6.4: Short-Term vs. Long-Term, When the Math Changes the Holding Decision
  9. Lesson 6.5: The Tax-Aware Exit Decision Framework
  10. Quiz 6.5: The Tax-Aware Exit Decision Framework
Entity Structure for Tax Efficiency
4 Lessons4 Quizzes
  1. Lesson 7.1: LLC vs. LP vs. S-Corp vs. C-Corp, How Each Entity Is Taxed
  2. Quiz 7.1: LLC vs. LP vs. S-Corp vs. C-Corp, How Each Entity Is Taxed
  3. Lesson 7.2: Self-Employment Tax, When It Applies to CRE Income and How to Manage It
  4. Quiz 7.2: Self-Employment Tax, When It Applies to CRE Income and How to Manage It
  5. Lesson 7.3: The Qualified Business Income Deduction, Does CRE Qualify?
  6. Quiz 7.3: The Qualified Business Income Deduction, Does CRE Qualify?
  7. Lesson 7.4: Structuring Multiple Properties for Liability and Tax Efficiency
  8. Quiz 7.4: Structuring Multiple Properties for Liability and Tax Efficiency
Capstone, Tax-Optimize a CRE Portfolio Exit
4 Lessons4 Quizzes
  1. Lesson 8.1: The Scenario Setup, 20-Unit Apartment Building, 8 Years of Ownership
  2. Quiz 8.1: The Scenario Setup, 20-Unit Apartment Building, 8 Years of Ownership
  3. Lesson 8.2: The Analysis, Calculating Tax Under All Four Options
  4. Quiz 8.2: The Analysis, Calculating Tax Under All Four Options
  5. Lesson 8.3: The Decision, Which Option Maximizes After-Tax Proceeds?
  6. Quiz 8.3: The Decision, Which Option Maximizes After-Tax Proceeds?
  7. Lesson 8.4: The Pro Lens, How a CRE Tax Attorney and CPA Approach This Exit
  8. Quiz 8.4: The Pro Lens, How a CRE Tax Attorney and CPA Approach This Exit
Final Exam
1 Quiz
  1. CRE Tax Strategy: Depreciation, 1031s & Cost Segregation, Final Exam

The tax code rewards real estate owners more than almost anyone. The difference is using it by design.

You cover depreciation, cost segregation to accelerate it, the 1031 exchange that compounds wealth, and the passive activity loss rules that unlock the full benefit. Modules on capital gains and entity structure finish the plan.

Eight modules, 35 written lessons, 103 practice questions, and a graded final exam with a certificate. The capstone tax-optimizes a portfolio exit. Self-paced, no expiry date. Yours to finish on your own timeline.

Understand your return after tax, not before.

Educational only. This is not tax or legal advice. Confirm your situation with a CPA or attorney.

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