Justin Shore, an advisory manager at Hall CPA, specializes in tax strategies for real estate investors. In this discussion, he reveals costly CPA mistakes, such as misclassifying repairs that could trigger audits and the dangers of opting out of bonus depreciation. Shore also shares a grouping strategy that saved a client over $150K, and explains the nuances of the Augusta Rule. This enlightening conversation underscores the importance of a CPA who understands real estate to avoid financial pitfalls and maximize tax savings.
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volunteer_activism ADVICE
Beware Electing Out of Bonus Depreciation
Avoid electing out of bonus depreciation unless strategically planned because it's an irrevocable decision for that tax year.
Always discuss the implications with your CPA before making this election to prevent significant lost tax deductions.
volunteer_activism ADVICE
Request Depreciation Detail Pages
Always ask your CPA for depreciation detail pages to review how assets are classified and depreciated.
Proper classification between repairs and improvements can save huge tax deductions and avoid long depreciation periods for small expenses.
question_answer ANECDOTE
Grouping Election Saved $150K+
A client with syndication investments missed $150,000+ in losses they could offset due to a missed grouping election applying to syndications.
Grouping syndicate interests with rental properties helps meet material participation and utilize real estate professional status benefits.
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In this episode of the Tax Smart REI Podcast, Thomas, Justin, and Ryan break down the most common (and costly) mistakes we see from other CPAs and the massive tax savings real estate investors are missing because of them.
Tune in to learn:
- Why electing out of bonus depreciation without knowing it can cost you tens of thousands
- How improperly classifying repairs vs. improvements could trigger an audit or shrink your deductions
- The overlooked grouping strategy that saved one client $150K+ in a single year
- What really happens when CPAs misuse the Augusta Rule (and how to do it right)
- How a "medical tax specialist" cost a client over $100K in phantom tax savings—and exposed them to penalties
If you’re working with a CPA who doesn’t specialize in real estate, this episode might just save you from years of missed opportunities or worse, an audit.
To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6
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