Cost Segregation, Bonus Depreciation, and Tax Secrets for Short-Term and Long-Term Rental Owners
From depreciation fundamentals to advanced investor case studies -- everything you need to minimize your real estate tax burden legally and effectively.
Why real estate remains the single most tax-advantaged asset class in the Internal Revenue Code -- and how this book gives you the playbook to capture every available benefit.
Understanding how real estate income is taxed -- active vs passive, ordinary vs capital gains, and why structure matters from day one.
How depreciation works for rental properties -- 27.5 year residential vs 39 year commercial recovery, and why straight-line depreciation leaves money on the table.
The unique tax advantages of short-term rentals -- how average rental periods of 7 days or less change the passive activity classification entirely.
How cost segregation studies reclassify building components into 5, 7, and 15 year property for accelerated depreciation -- turning 27.5 years of deductions into Year 1.
How 100% bonus depreciation under OBBBA works, which assets qualify, and how to combine it with cost segregation for maximum first-year write-offs.
Understanding passive activity loss rules -- the $25K allowance, the $150K phase-out, and why most high-income investors see their rental losses trapped.
Qualifying for Real Estate Professional Status -- the 750-hour test, material participation, and how REPS unlocks all passive rental losses against active income.
The STR tax loophole explained -- how short-term rentals with material participation create non-passive losses that offset W-2 and business income without needing REPS.
How 1031 like-kind exchanges defer capital gains and depreciation recapture indefinitely, and the strict timelines you must follow.
Qualified Opportunity Zones -- deferring and potentially excluding capital gains through investment in designated census tracts.
Choosing the right entity for your rental properties -- LLCs, partnerships, S-Corps, and C-Corps, and when each structure makes sense.
Mortgage interest deductions, points, loan origination costs, and other financing-related tax benefits for real estate investors.
Real-world case studies showing how investors combine these strategies -- a W-2 earner using STR + cost seg, a portfolio investor using REPS, and more.
A step-by-step implementation roadmap that ties every strategy together -- your 90-day action plan to restructure, optimize, and start saving on taxes immediately.
Whether you own one rental or a portfolio of 50, this playbook meets you where you are and shows you the path to tax optimization.
Owners of residential rental properties looking to understand depreciation, deductions, and entity structuring for maximum tax efficiency.
Short-term rental operators who want to leverage the STR tax loophole, cost segregation, and material participation rules to offset active income.
Active and passive investors building real estate portfolios who need to understand 1031 exchanges, opportunity zones, and advanced tax planning.
High-income W-2 professionals looking to use real estate losses -- particularly through STRs and REPS -- to offset their salaried income.
Anyone considering a cost segregation study who wants to understand the process, qualifications, and potential tax savings before engaging a firm.
13 chapters of actionable tax strategy backed by the IRC, real-world case studies, and years of advisory experience.
First Edition, 2026 -- AE Tax Advisors
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Coming SoonThe book gives you the knowledge. AE Tax Advisors gives you the execution -- cost segregation studies, entity structuring, and full tax planning.