A cost segregation study is one of the most powerful tools for 2026. It allows you to reclassify portions of a building (like fixtures, landscaping, and flooring) from 27.5/39-year property into 5, 7, or 15-year property. This lets you accelerate depreciation deductions, drastically lowering taxable income in the early years of ownership—especially with 100% bonus depreciation still in effect . 👉 Tip: Best performed in the year you purchase, construct, or renovate a property. Have you ever done a cost segregation study on a rental property? What was the impact?

When selling property in 2026, understanding the holding period is key. Assets held for more than 24 months qualify for Long-Term Capital Gains treatment, currently taxed at favorable rates (0%, 15%, or 20% depending on income). Short-term gains on property held 24 months or less are taxed as ordinary income (up to 37%). The gain exclusion on a primary residence ($250k/$500k) is still available if you've lived there for 2 of the last 5 years . 👉 Tip: Before selling, run the numbers to see how the 24-month mark changes your tax bill. Have you ever held a property an extra few months just to cross the long-term holding threshold?

For 2026, the criteria for Real Estate Professional status remains a powerful tool. If you qualify (more than 50% of personal services in real estate trades with over 750 hours), your rental activities are considered non-passive. This allows you to deduct unlimited rental losses against your other income (like W-2 wages or business profits)—a game-changer for high-income investors. 👉 Tip: Meticulously log your hours. A contemporaneous time log is your best friend during an audit. Have you ever qualified for Real Estate Professional status, or do you plan to track your hours to try this year?

Organize receipts by category and add a short note on who, what, when, where, why for business expenses. This simple habit makes audits less stressful and deductions easier to claim. Are you team “digital folder” or team “physical binder” for receipts?

Under current law, businesses can expense qualifying property (equipment, vehicles, tech) using Section 179 up to multi‑million limits and also claim 100% bonus depreciation where eligible. 👉 This means you can often write off large purchases the year you buy them. What piece of equipment would you expense this year?