Real estate tax
Greywood CPA plans taxes for real estate investors, sponsors and developers. Real estate has more planning room than almost any other business: depreciation, cost segregation, like-kind exchanges and how your activity is classified can change your tax bill by large amounts. Every plan is prepared and reviewed by a senior CPA.
Residential rental buildings are depreciated over 27.5 years and commercial buildings over 39 years, but a cost segregation study can move part of the cost into shorter lives. Rental losses are generally passive unless you qualify as a real estate professional. We model each option before you buy, sell or refinance.
Last reviewed: November 2026
Buildings are depreciated over 27.5 years (residential rental) or 39 years (commercial). A cost segregation study identifies parts of a property, such as certain fixtures, flooring and land improvements, that qualify for 5, 7 or 15-year lives, and those may also qualify for bonus depreciation. We coordinate with an engineering-based cost segregation provider and handle the tax reporting, including catch-up depreciation on properties you already own.
Selling investment real estate and buying replacement property through a qualified intermediary can defer the gain. The replacement property must be identified within 45 days and acquired within 180 days of the sale. Exchanges inside partnerships and syndications need extra planning, because individual partners can't easily exchange separately.
Rental activity can qualify for the qualified business income deduction if it rises to the level of a trade or business. The IRS safe harbor, which generally requires 250 or more hours of rental services a year and separate books, gives a clear path for many owners. We test which properties qualify and document it.
Residential rental buildings over 27.5 years and commercial buildings over 39 years. Land is not depreciated. A cost segregation study can move parts of the cost into 5, 7 or 15-year lives.
Replacement property must be identified within 45 days and acquired within 180 days after the sale of the relinquished property, using a qualified intermediary.
Generally, someone who spends more than half of their working time and at least 750 hours a year in real property businesses in which they materially participate.
It can, if the activity is a trade or business. The IRS safe harbor, which generally requires 250 or more hours of rental services a year and separate records, helps many owners qualify.
We quote one fixed fee in writing before any work starts, based on the number of properties, entities and transactions involved.
Talk to us before you close. A senior CPA will send a fixed-fee proposal within 1–3 business days.