Key takeaways
- Cost seg standard at 50+ units.
- Bonus depreciation phasing down.
- 1031 exchange compounds equity.
- REPS unlocks for sponsors.
- K-1 distribution timeline matters.
Core concepts
Cost seg
20–35% of basis accelerated.
Bonus depreciation
Phasing down — accelerate now.
1031
Roll into bigger deal.
Step-by-step framework
- 1Engage cost seg firm.
- 2File bonus depreciation.
- 3Plan 1031 exits.
- 4K-1 by March 15.
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Common mistakes to avoid
- Skipping cost seg.
- Missing bonus window.
Frequently asked questions
Cost seg cost?
$5–15k per asset.
Bonus % 2026?
Verify current year.
K-1 timing?
March 15.
REPS for LPs?
No — sponsors only typically.
Action checklist
- ☐Cost seg engaged.
- ☐Bonus claimed.
- ☐1031 plan.
- ☐K-1 on time.
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