Proactive tax planning is one of the most effective ways individuals and businesses can protect cash flow and avoid surprises. For commercial real estate owners, developers, and investors thoughtful planning becomes even more valuable because of the powerful deductions and incentives tied to property, construction, and energy efficiency.
Use this checklist to assess your tax position, uncover opportunities, and prepare conversations with your CPA, so your next tax filing is as efficient and financially beneficial as possible.
Assess Your Current Tax Position
Before taking action, gain clarity on where you stand.
Key items to review:
- Your projected tax liability based on current income and deductions
- Any major financial changes such as property acquisitions, sales, refinancing, or new leases
- Large expenses already incurred versus those that can still be accelerated
- Estimated tax payments made to date
A clear snapshot of your tax position allows you to plan more strategically.
Explore Strategies to Reduce Your Current Tax Liability
There may still be opportunities to lower your tax bill before the current year closes, especially for commercial real estate and investment properties.
Cost Segregation for New or Existing Properties
If you placed a property in service recently, a cost segregation study can accelerate depreciation and free up immediate cash flow. Older properties may also qualify through a Look Back Study, allowing missed depreciation to be captured without amending prior returns. And with the reinstatement of 100% bonus depreciation for assets acquired or placed in service after January 19th 2025, a cost segregation study is more valuable than ever.
Section 179D for Energy Efficient Buildings
If you completed, or are completing, energy efficient improvements, you may qualify for a valuable deduction based on your building’s square footage and the level of efficiency improvements. But, it must be kept in mind that 2026 will introduce a terminus for the deduction, which is currently set for June 30, 2026.
R&D Tax Credits for Qualified Innovation
Companies involved in engineering, manufacturing, software, robotics, technology, product improvement, and many others may be able to claim credits that directly offset tax liability.
Expense Timing
Where appropriate, certain expenses can be prepaid or accelerated into the current year. Conversely, some income can be deferred when allowable.
Plan for Upcoming Real Estate Projects or Investments
Commercial real estate planning can significantly affect your tax outlook.
Timing of Purchases and Construction
Understanding when a property will be placed in service helps you plan for depreciation, energy incentives, and available elections.
Renovations, Capital Improvements, and Upgrades
Projects involving energy efficiency, modernization, or adaptive reuse can increase future deductions and may unlock credits or accelerated depreciation.
Entity Structure Review
Shifts in ownership, refinancing, or expanding your portfolio may warrant reviewing your structure to ensure tax efficiency.
Strategies to Minimize Future Tax Liability
Once you know your plans for the year ahead, consider long-term tax strategies, including:
- Using cost segregation early on new acquisitions
- Tracking qualifying activities for R&D credits
- Planning energy efficient improvements that may qualify for incentives
- Evaluating depreciation elections and available bonus depreciation
- Strategically timing income or expense recognition
- Ensuring your business or partnership structure aligns with your goals
Smart Questions to Ask Your CPA
Open communication with your CPA helps you avoid unexpected tax burdens and ensures you’re leveraging all available opportunities. Consider asking:
- What is my projected tax liability for the current year?
- What options do I have to reduce that liability before year end?
(Ask specifically about depreciation strategies, energy incentives, and tax credits.)
- What projects or major financial events should I plan for in the coming year?
- What strategies should I implement now to minimize next year’s taxes?
Coming prepared with these questions makes your CPA meeting far more productive.
Reducing Quarterly Estimated Payments When Future Deductions Are Expected
Real estate investors frequently overpay quarterly estimated taxes because they do not factor in significant upcoming deductions or credits. If you expect benefits such as:
- A cost segregation study
- A Section 179D deduction
- R&D tax credits
- Large capital improvements or upcoming depreciation events
Then, you may be able to lower your quarterly estimated payments safely.
How to Handle This with Your CPA
- Share projected depreciation or credit amounts for the upcoming year
- Review safe harbor rules to avoid penalties
- Adjust estimated payments using IRS forms for individuals or business entities
- Document your basis for reducing estimates in case of future review
This approach keeps more cash in your business rather than tying it up with the IRS unnecessarily.
Prepare Proactively for a Stronger Financial Year
Thoughtful planning before tax season, especially for commercial property owners, opens the door to powerful tax-saving opportunities. Whether you want to explore cost segregation, 179D, R&D credits, or simply map out your strategy with better clarity, starting early allows you to maximize every benefit available.
At CSSI, we partner with commercial real estate investors as well as their CPA’s to provide expert guidance on how you can navigate and leverage the multiple tax strategies available for your investments. Contact us today to maximize your tax savings for the upcoming tax season. Contact us today to maximize your tax savings for the upcoming tax season.
