Cost Segregation
Accelerated depreciation for real estate investors
View Studies →Real strategies. Real savings. Exposed results from hundreds of tax planning engagements across every major strategy we deploy.
Explore case studies organized by strategy type. Each category includes detailed breakdowns of client situations, strategies applied, and documented results.
Accelerated depreciation for real estate investors
View Studies →S-Corp, C-Corp, and LLC optimization
View Studies →Recovering overpaid taxes from prior filings
View Studies →Short-term rental tax optimization
View Studies →Physicians, attorneys, and executives
View Studies →REPS qualification and PAL offset
View Studies →Defined benefit plans and 401(k) strategies
View Studies →Equipment and vehicle deduction strategies
View Studies →Business sale and succession tax planning
View Studies →State tax reduction and nexus planning
View Studies →A closer look at ten recent engagements, spanning diverse industries, property types, and planning strategies.
A real estate investor holding a portfolio of four apartment complexes (112 units total) across two states had been using straight-line depreciation since acquisition. Our cost segregation study reclassified 38% of the total basis into 5, 7, and 15-year property classes, unlocking substantial first-year deductions and freeing capital for additional acquisitions.
A four-physician medical group operating as a multi-member LLC was paying self-employment tax on the full net income of $1.4M annually. After analyzing reasonable compensation benchmarks and state-specific rules, we restructured the practice as an S-Corporation. The change reduced self-employment tax exposure and allowed the physicians to retain more earnings as distributions.
A client with seven rental properties had been filing returns without professional tax advisory for the previous three years. A lookback review revealed multiple missed deductions including depreciation errors, unclaimed repairs, and overlooked safe harbor elections. We filed amended returns for 2022, 2023, and 2024, recovering a combined $89,200 in overpaid federal and state taxes.
A software engineer earning $340K in W-2 income purchased a short-term rental property and needed to materially participate to use the losses against ordinary income. We documented over 750 hours of material participation across property management, guest communication, and maintenance coordination. Combined with a cost segregation study, the client generated a paper loss large enough to offset a significant portion of W-2 wages.
An orthopedic surgeon earning $1.1M annually between surgical income and a private practice had an effective federal and state tax rate of 39%. Through a combination of entity restructuring, retirement plan optimization, and real estate investments paired with cost segregation, we reduced the effective rate to 28%. The total annual tax reduction exceeded $121,000 in the first year of the engagement.
A married couple with $620K in combined W-2 income had accumulated $310K in suspended passive activity losses from their rental portfolio. The spouse who managed the properties full-time had never formally documented REPS qualification. We established a contemporaneous time log, verified the 750-hour and material participation requirements, and filed the election. The unlocked losses offset current-year income and produced a significant refund after amending the prior year return.
A senior partner at a mid-size law firm earning $780K annually was maximizing a solo 401(k) but still facing a high tax burden. After evaluating the firm's employee demographics and cash flow, we designed a cash balance defined benefit plan layered on top of the existing 401(k). The combined contributions sheltered over $312K per year from current taxation, substantially lowering the partner's effective rate while building retirement assets.
A commercial construction company with $2.8M in annual revenue needed to replace aging heavy equipment. We structured the acquisition of three excavators, two loaders, and a fleet of service trucks to maximize Section 179 and bonus depreciation in the purchase year. The combined deductions offset a significant portion of the company's taxable income, resulting in an effective federal tax rate of just 14% for the year.
The founder of a healthcare technology company planned to sell the business for $4.2M. The company had been structured as a C-Corporation from inception and held qualifying small business stock under IRC Section 1202. We verified QSBS eligibility, confirmed the five-year holding period, and ensured the active business requirement was met. The founder excluded a significant portion of the gain from federal taxation, resulting in $620K in tax savings compared to ordinary capital gains treatment.
An e-commerce business with $3.6M in annual revenue was filing income tax returns in 14 states based on outdated nexus assumptions. After conducting a nexus study and analyzing economic nexus thresholds, we determined the company only had filing obligations in 8 states. We also identified a more favorable apportionment method in two high-tax states. The combined savings from eliminating unnecessary filings and optimizing apportionment totaled $67,400 annually.
In-depth analyses, strategy breakdowns, and lessons learned from our client engagements.
An investor with properties in three states accelerated over $840K in depreciation through targeted studies.
Practical strategies for meeting the 750-hour threshold and keeping audit-proof records.
Why most medical practices overpay on self-employment tax and how S-Corp elections fix it.
Using Form 3115 to catch up on depreciation without amending prior returns.
Requirements, planning strategies, and common pitfalls under IRC Section 1202.
Allocating purchase price, goodwill amortization, and Section 179 for dental equipment.
Separating real estate, operations, and management for liability and tax efficiency.
How cash balance plans let high-earning attorneys shelter over $300K per year.
Deferring and reducing capital gains through qualified Opportunity Zone funds.
Structuring salary, bonuses, and deferred compensation for hospital system executives.
Common errors on rental property returns and how amendments recover thousands.
When converting from an LLC to S-Corp makes sense for online sellers.
Rules for heavy SUVs, trucks, and work vehicles under current tax law.
Comparing S-Corp, C-Corp, and LLC options for single and multi-unit franchisees.
Unreimbursed business expenses, home office, mileage, and continuing education for 1099 reps.
Bonus depreciation phase-down impacts and strategies to maximize current-year deductions.
Real estate, retirement plans, and charitable giving for employees earning over $500K.
The 45-day identification and 180-day closing windows explained with real examples.
Understanding PAL limitations, grouping elections, and exceptions for real estate professionals.
Who qualifies, how contributions are calculated, and why it beats a solo 401(k) for high earners.
Strategies to maximize cost of goods sold when most deductions are disallowed.
Avoiding excess benefit transactions and staying compliant with IRS intermediate sanctions.
How independent insurance agents benefit from S-Corp elections and retirement plans.
Understanding intangible drilling costs, depletion allowances, and working interest rules.
Look-back method, completed contract accounting, and equipment depreciation for contractors.
S-Corp structuring, equipment expensing, and retirement plans for veterinary clinic owners.
K-1 reporting, promoted interests, carried interest rules, and UBIT considerations.
Advanced strategies for solo attorneys including cash balance plans and Augusta Rule income.
Entity selection, home studio deductions, travel write-offs, and estimated tax planning.
Using multiple entities to protect assets and create tax-efficient rental income streams.
Section 179 for farm equipment, land improvements, conservation easements, and soil preparation.
Jock tax obligations, endorsement income structuring, and post-career financial planning.
How dental support organizations allocate income and the tax consequences for affiliated practices.
Economic nexus thresholds by state and strategies to manage compliance costs.
Capital gains, cost basis tracking, and whether crypto qualifies for like-kind exchange treatment.
S-Corp structuring, equipment deductions, and retirement plans for PT practice owners.
Comparing contribution limits, costs, and tax impact for independent consultants.
How parks with roads, utility hookups, and common areas benefit from accelerated depreciation.
Section 179 for heavy vehicles, per diem meal allowances, and fuel tax credits.
Furniture, fixtures, and equipment in hospitality properties as 5 and 7-year property.
Tunnel systems, vacuum stations, and signage as short-life depreciable assets.
Reclassifying metal partitions, security systems, and paving for accelerated deductions.
Cost segregation for medical equipment, specialized fixtures, and accessibility improvements.
Combining the Investment Tax Credit with accelerated depreciation for maximum benefit.
How the Section 45B tip credit reduces employer payroll tax liability on tipped wages.
When a chiropractic practice benefits from S-Corp election and how to set reasonable pay.
Vehicle, marketing, office, and licensing deductions for independent real estate agents.
Identifying qualified research expenses in manufacturing processes under IRC Section 41.
How event venues reclassify decorative landscaping, outdoor structures, and electrical systems.
Separating locations into individual entities for liability protection and tax optimization.
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Book Your Free ConsultationAll case study results are based on actual client engagements. Individual results vary depending on specific financial circumstances, property types, entity structures, and applicable tax law. The information presented on this site is for educational purposes only and does not constitute tax, legal, or financial advice. Past performance does not guarantee future results. AE Tax Advisors recommends consulting with a qualified tax professional before making any tax planning decisions. All figures are approximate and may reflect combined federal and state tax impacts. Strategy availability is subject to current IRS regulations and may change with future legislation.