Tag

#Cost Segregation

Cost segregation studies, engineering allocations, and bonus depreciation strategy for coastal rental owners.

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Property Management

The Real Cost of a California Rental LLC

Form 568, the $800 minimum tax, charging-order protection, and the practical owner-economics for coastal California rental LLCs in 2026.

Paul Johnston Apr 8, 2026 11 min
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Property Management

Passive Loss Deductions on California Rentals

Coastal rental losses are passive by default. Under $100K AGI you can deduct $25K against W-2 income; from $100K–$150K it phases out; above $150K, all losses suspend. Here is the playbook for each tier.

Chris Kerstner Jan 22, 2026 8 min
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Property Management

The 750-Hour Test for Real Estate Professional Status

REPS lets coastal rental owners deduct unlimited rental losses against W-2 or business income. Here is the 750-hour test, the more-than-half-time test, and the documentation the IRS actually wants to see.

Chris Kerstner Jan 15, 2026 9 min
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Finance & Taxes

Cost Segregation on California Rental Property

Cost segregation studies reclassify 20–40% of a coastal SFR's basis into 5- and 15-year property, unlocking immediate bonus depreciation and dramatically improving after-tax cash flow.

Chris Kerstner Dec 22, 2025 12 min