Learning Center

The Status Of Bonus Depreciation In 2025 The Tax Cuts and Jobs Act (TCJA) of 2017 brought about some of the most sweeping tax reforms in decades. Among its many provisions, the enhancement of bonus depreciation stands out as a powerful tool for businesses. Bonus depreciation (Section 168 (k) of the Internal Revenue Code) allows […]

Home Sale Exclusion The home scale exclusion, also known as the Section 121 Home Sale Exclusion, is a valuable provision in the U.S. tax code. It allows homeowners to exclude a substantial portion of the profit from selling their primary residence from taxable income. In this article, we’ll cover the home sale exclusion in more […]

A 1031 Exchange A 1031 like-kind exchange is a tax-deferment strategy that allows real estate investors to sell one investment property and purchase another without immediately paying capital gains taxes. This tax strategy, governed by Section 1031 of the Internal Revenue Code, is a powerful tool for building wealth and expanding investment portfolios. It provides […]

A Landlord’s Guide To Depreciation Recapture Depreciation is one of the most valuable tools for landlords, helping reduce taxable income by reflecting the decline in value of assets over time. But what happens when you decide to sell a property, and its value has appreciated instead of depreciated? That’s where depreciation recapture comes into play. […]

Calculating Personal Property Depreciation In the world of taxes, depreciation is one of your best allies—it means more money in your pocket. This often-overlooked benefit can significantly impact your bottom line as a rental property owner, reducing your taxable income and boosting your overall profitability. However, depreciation can be a bit tricky to navigate, especially […]

A Guide To Depreciation for Rental Additions and Improvements Depreciation is the gradual decline in value of assets over time. It applies to everything from buildings to equipment to cars. As a rental property owner, think of it as your property’s wear-and-tear tax break—a way to turn aging assets into valuable deductions. One common area […]

Maximizing Deductions For Property Repairs As a landlord and real estate investor, your primary goal is to build wealth through rental properties. While minimizing your tax burden is an added benefit, focusing solely on tax reduction misses the bigger picture. Think of tax savings as the icing on the wealth-building cake, not the cake itself. […]

Rental Expense Deduction Safe Harbors Contrary to their name, safe harbors have nothing to do with boats and everything to do with your rental property business. Or at least, they should! If complicated tax regulations have been an obstacle keeping you from maximizing your deductions, then safe harbors may be the solution. If you’re looking […]

What Is The Difference Between Repairs vs. Improvements? Maintenance is one of the largest expense categories for landlords. From regular upkeep to larger projects, keeping rental properties in top condition requires a significant investment of your revenue. Fortunately, most of these costs are tax deductible. However, correctly categorizing and deducting maintenance expenses—whether they’re repairs or […]

Rental Operating Expense If you’re a rental property manager, there’s no doubt that having your work and investments officially classified as a ‘business’ is the best scenario for tax season. The process of being considered a business by the IRS—which we cover in more detail in another article—grants you the opportunity to deduct a number […]

Your Guide To Landlord Tax Classifications Understanding your IRS classification for tax purposes is crucial when managing rental properties. This classification determines which deductions you can claim, influencing your overall financial strategy. The IRS categorizes rental activities into three distinct classifications—real estate investment, not-for-profit activity, or business ownership—each with specific implications for income tax filings. […]