Real Estate Tax Guides

The RealtyTaxTools Blog

Tax guides for landlords and investors — written by a licensed CPA. Depreciation, 1031 exchanges, cost segregation, short-term rental taxes, and more.

How to Calculate Rental Property Depreciation (Step-by-Step)

A $350,000 rental property can generate over $10,000 in annual depreciation deductions — but only if you calculate it correctly. Learn how to determine your depreciable basis, apply the mid-month convention, and report it on Schedule E.

What Is Cost Segregation? How Real Estate Investors Use It to Cut Taxes

Standard depreciation spreads your deductions over 27.5 years. Cost segregation can front-load $50,000–$150,000 of deductions into Year 1 — potentially offsetting W-2 income for investors who qualify. Here's exactly how it works.

How a 1031 Exchange Works: Rules, Deadlines, and Tax Savings Explained

A 1031 exchange can defer tens of thousands in capital gains and depreciation recapture taxes when you sell a rental property. Learn the 45-day and 180-day rules, what counts as taxable boot, and how to structure a clean exchange.