The Best Ever CRE Show JF 3985: Cost Seg, 1245 Exchange, and Bonus Depreciation ft. Chris Streit
Aug 2, 2025
Chris Streit, a tax strategist and founder of CSAP, shares invaluable insights on navigating complex tax strategies for real estate investors. He discusses cost segregation and 1245 exchanges, revealing how they can unlock substantial cash savings while mitigating depreciation recapture. Chris highlights a real-world example where a client saved $1.5M on a multifamily deal. He also covers overlooked tactics like partial asset dispositions and proactive planning that align with recent tax law changes, emphasizing the critical role of expert guidance in maximizing returns.
AI Snips
Chapters
Transcript
Episode notes
1245 Exchange Reduces Tax Recapture
- The 1245 exchange revalues personal property assets at the time of sale, reducing depreciation recapture taxes.
- This method assesses asset obsolescence to shift value away from taxable recapture, providing permanent savings.
$36M Deal Saved $1M In Taxes
- A $36M multifamily sale used 1245 exchange to save over $1M in recapture taxes with a $30K fee.
- The client also gained $2M in accelerated depreciation cash benefits within 2.5 years.
When To Consider 1245 Exchange
- Cost segregation must be done first to use the 1245 exchange effectively.
- Properties above $150k basis should be evaluated for 1245 exchange benefits, especially before selling.