The 1031 Like-Kind Exchange remains intact in 2026, allowing investors to defer all capital gains and depreciation recapture taxes. With the higher $15 million estate tax exemption, it's a fantastic strategy for passing on appreciated assets to the next generation tax-efficiently. 👉 Tip: Make sure to identify potential replacement properties within 45 days and close within 180 days. What has been the biggest challenge you’ve faced when completing a 1031 exchange?

A Cost Segregation Study is a powerful strategy to accelerate depreciation deductions. By reclassifying parts of your property—such as fixtures or landscaping—from 27.5/39-year property to 5, 7, or 15-year property, you can drastically reduce taxable income in the first few years of ownership. 👉 Tip: Perform a cost segregation study in the year of purchase, construction, or renovation for maximum benefits. Have you done a cost segregation study on your rental property? How did it impact your taxes?

Understanding the holding period for property sales is crucial in 2026. If you’ve held a property for more than 24 months, the profits qualify for Long-Term Capital Gains treatment (0%, 15%, or 20% tax rates, depending on your income). Short-term capital gains, for properties held 24 months or less, are taxed as ordinary income (up to 37%). 👉 Tip: Always calculate the tax difference between short-term and long-term before selling. Have you ever held onto a property a bit longer to qualify for the long-term capital gains treatment?

For 2026, the Real Estate Professional status remains a powerful tool for high-income investors. If you qualify—by spending more than 750 hours working in real estate and over 50% of your total working hours in the industry—you can treat your rental activities as non-passive. This lets you deduct unlimited rental losses against other income, such as business profits or wages. 👉 Tip: Track your hours carefully. A contemporaneous time log is your best friend during an audit. Have you ever qualified for Real Estate Professional status? If not, are you planning to track your hours this year?

Understanding the holding period for property sales is crucial in 2026. If you’ve held a property for more than 24 months, the profits qualify for Long-Term Capital Gains treatment (0%, 15%, or 20% tax rates, depending on your income). Short-term capital gains, for properties held 24 months or less, are taxed as ordinary income (up to 37%). 👉 Tip: Always calculate the tax difference between short-term and long-term before selling. Have you ever held onto a property a bit longer to qualify for the long-term capital gains treatment?