The Journal

Field notes for residential investors and their CPAs — plain-spoken essays on the tax law, the methodology, and the strategy of accelerated depreciation for residential property.

Audit-readynot audit-proof.
Audit defenseJune 12, 2026

Is cost segregation an audit risk? Audit-ready vs. audit-proof.

No study is “audit-proof” — and the word is a red flag. What audit-ready actually means, why a study doesn't by itself raise your odds, and the documentation that holds up if the IRS asks.

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Catch-up§481(a)
Tax strategyJune 12, 2026

Look-back studies and §481(a): catching the depreciation you missed.

Bought a rental and never did a study? A look-back claims every year of missed depreciation in your current tax year through a §481(a) adjustment — no amended returns. Here's the mechanic, with the numbers.

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$What it costs
PricingJune 11, 2026

What a cost segregation study actually costs for a residential rental.

Real pricing on a residential study, why it costs far less than a five-figure commercial one, and a dollar-by-dollar look at whether the fee actually pays for itself.

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Site visit?
MethodologyJune 10, 2026

Do you really need a site visit for a residential cost segregation study?

For most 1-4 unit rentals and STRs, a physical walk-through isn't required and rarely changes the result. What we use instead — and why the study is still audit-ready.

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22%For CPAs
For CPAsJune 10, 2026

A CPA's quick reference: when residential cost segregation is worth recommending.

The four variables that decide whether a study pencils — basis, marginal rate, holding period, and usability — a property-value rule of thumb with a worked example, and the cases where it's better to skip it.

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STRMaterialparticipation.
STR strategyMay 25, 2026

The short-term rental loophole, explained without the YouTube fluff.

A long-standing IRC §469 rule lets STR owners deduct cost-seg losses against W-2 income — if material participation holds up. Here's what the YouTube version glosses over.

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Tax policyMay 18, 2026

100% bonus depreciation is back. Here's what it means for your next residential acquisition.

The OBBB restored 100% bonus depreciation for property placed in service after January 19, 2025. Here's how it changes the math.

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