Cost Segregation Isn't Enough — The Mandatory Tax Rule That Almost Nobody Uses
"I've Been in This Business 30 Years — How Have I Never Heard of This?"
Show notes
Most real estate owners know about cost segregation. Almost nobody knows about the Tangible Property Regulations (TPRs), which and unlike cost segregation, the TPRs are mandatory. Miss a deduction in the year you were entitled to it, and under the "use it or lose it" rules, you may not be able to claim it at all. In this episode of the Prestige Perspective, Mark Clark, CFP® sits down with Eric Wallace, CPA — a nationally published tax author whose material is used by CPAs across the country, and who employs four full-time engineers to do cost segregation and tangible property work. Eric doesn't prepare tax returns. He finds what everyone else left on the depreciation schedule.
We cover:
- Why a billion-dollar real estate fund overpaid by hundreds of millions — with a Big 4 firm preparing their returns
- The $9M apartment complex where roughly $8M never should have been capitalized
- Partial asset disposition: the deduction most cost seg providers never mention
- Recapture explained in plain English — and how to avoid creating it in the first place
- Why you can't fix this with an amended return (and what you file instead)
- The one document your CPA may be reluctant to hand over — and why it's legally yours
- An 80-something owner who recovered a $5M deduction before it disappeared into his estate — and the client who waited too long
- Whether any of this raises your audit risk (short answer: you're coming INTO compliance)
- How the fees actually work, and why the first look costs nothing
Have a question? Email us at hello@prestigeadvisors360.com or schedule a free conversation with us today!
Smart Tax, Smarter Growth.
— — —
Disclaimer: This content is for educational and informational purposes only and does not constitute tax, legal, investment, or financial advice. Prestige Perspective is a general discussion of concepts and strategies that may not be suitable for your specific situation. Tax laws and regulations change and apply differently to each individual, and nothing here should be relied upon as a recommendation. Past results do not guarantee future outcomes. Consult a qualified tax, legal, or financial professional before acting on anything discussed. Prestige Advisors, Inc.