Tax planning for real estate investors.
Cost segregation, 1031 exchanges, REPS qualification, short-term-rental loophole, and the wealth-side coordination most CPAs miss.
The pains we hear from people like you.
Your CPA filed a return. Did they plan a strategy?
Most real estate CPAs are excellent at compliance — preparing the 1040 + Schedule E. Few do proactive planning: cost-seg sequencing, 1031 timing, REPS hour-logging, gain budgeting in liquidation years.
1031 windows are unforgiving.
45-day identification + 180-day close. Most investors lose deferral because they didn't pre-engage a Qualified Intermediary or didn't have backup properties identified. Once the cash hits your account, the deferral is gone.
Real Estate Professional status is brittle.
750+ hours, more than half of total work time, material participation per property — the IRS will scrutinize. Without contemporaneous hour logs, REPS claims routinely lose in Tax Court.
Cost seg + bonus depreciation phase-down is shrinking the window.
Bonus depreciation phases down 20% per year. Stacking cost seg with a properly-timed acquisition has a narrowing window. Coordinate with your CPA before closing — not after.
Strategies we may apply.
Every Vega Strategy Map is range-bound — your specific facts determine the actual impact. CPA + IAR review every strategy before it reaches you.
Cost segregation study
Reclassify components of a building into 5-, 7-, or 15-year recovery periods. Combined with bonus depreciation, may produce a large first-year deduction.
Learn the term1031 like-kind exchange
Defer capital gain on investment property sale. Tight 45/180-day windows. Qualified Intermediary required. DST backups available.
Learn the termReal Estate Professional Status (REPS)
Convert passive rental losses into non-passive that may offset W-2 or business income. 750+ hours + more than half of total work time required.
Learn the termShort-term rental loophole
Avg guest stay ≤ 7 days + material participation = losses may offset active income without REPS. The 'buy a beach house, write off $80K' play, done right.
Learn the termMulti-state nexus + entity structuring
Out-of-state rentals create filing obligations. LLC-per-property vs umbrella LLC is a real decision. We model state-by-state.
Year-end gain budgeting
Coordinate planned realizations + losses + estimated payments across taxable accounts to land at a target taxable income for the year.
Frequently asked
Is a cost-seg study worth it for a property under $500K?▾
Generally yes for properties with basis $200K+. Study cost runs $3K-$15K depending on complexity. First-year deduction depends on bonus depreciation rates (phasing down 20%/year) and your tax bracket. We model the break-even before recommending the study.
Can I do a 1031 from a rental into an Airbnb?▾
Generally yes — both are real estate held for investment or use in a trade or business. The 14-day personal-use rule applies for vacation properties; staying in the property too many days can disqualify the exchange. Coordinate the use rules with your CPA before closing.
What does REPS actually require me to log?▾
Every hour: date, activity, property, business purpose. The IRS will want to see the equivalent of a billing diary. Modern landlords use apps (TimeShifter, Stessa, dedicated calendars) — anything that produces a contemporaneous record. Vague after-the-fact reconstructions lose in audits.
Do you handle multi-state filings?▾
Yes. Multi-state nexus, sourcing rules, apportionment, and state credits are all in scope. Out-of-state rentals are common and require multiple state filings; we handle the coordination.
Strategy Map for real estate investors. Free.
Upload your prior return + 5 quick questions. We email a one-page Tax Strategy Map. Reviewed and ratified by a licensed CPA. Free.
Create accountCPA + IAR reviewed. Range-bound. No hourly billing.