Prepared for CPA review · Ledgerline CPA Group

Brazos Rental Communities: tax study packet, tax year 2026

Prepared Oct 26, 2026 · scenario moderate · rates federal 37%, state 0%, discount 7% · data f4ce0f152e2da742

01Summary

In CPA terms, every amount opens its rule, inputs and source, and says when it is an estimate or unverified.

02Form 4562 data sheet (depreciation)

03Form 3115 data sheets (accounting method changes)

04Credits and deductions (Forms 8908, 7205, 6765)

• 45L · Cypress Bend BTR (60 homes): 60 homes, credit $135,000, claimable $135,000; 6 homes earn none (cutoff or certification).

05Elections and positions

1. Cypress Bend BTR (60 homes): claim bonus depreciation on 5-, 7- and 15-year property (no election out); original return, Form 4562.
2. Pecan Grove BTR phase 2 (40 homes): claim bonus depreciation on 5-, 7- and 15-year property (no election out); original return, Form 4562.
3. Small business taxpayer under 448(c): confirm aggregation of related entities (448(c)(2)) before adopting exemptions.

06Loss limits

461(l) and NOL roll-up at business income $1,100,000 held flat: NOL carried past the last modeled year $0. Excess business loss 2026: $2,913,165.

07Documents

• Cypress Bend BTR · Job cost ledger / general ledger: provided
• Cypress Bend BTR · Contracts, subcontracts and change orders: missing
• Cypress Bend BTR · AIA G702/G703 pay applications: missing
• Cypress Bend BTR · Invoices for owner-furnished equipment (appliances, FF&E): missing
• Cypress Bend BTR · Drawings and specifications (as-built): missing
• Cypress Bend BTR · Photographs / site visit record: provided
• Cypress Bend BTR · Land evidence (appraisal, closing statement, land ledger): provided
• Cypress Bend BTR · Placed-in-service evidence (certificate of occupancy, first lease): missing
• Cypress Bend BTR · Construction start / binding contract evidence: missing
• Cypress Bend BTR · Engagement letter and fee arrangement: missing
• Pecan Grove BTR phase 2 · Job cost ledger / general ledger: missing
• Pecan Grove BTR phase 2 · Contracts, subcontracts and change orders: missing
• Pecan Grove BTR phase 2 · AIA G702/G703 pay applications: missing
• Pecan Grove BTR phase 2 · Invoices for owner-furnished equipment (appliances, FF&E): missing
• Pecan Grove BTR phase 2 · Drawings and specifications (as-built): missing
• Pecan Grove BTR phase 2 · Photographs / site visit record: missing
• Pecan Grove BTR phase 2 · Land evidence (appraisal, closing statement, land ledger): provided
• Pecan Grove BTR phase 2 · Placed-in-service evidence (certificate of occupancy, first lease): missing
• Pecan Grove BTR phase 2 · Construction start / binding contract evidence: missing
• Pecan Grove BTR phase 2 · Engagement letter and fee arrangement: missing

08Open questions for the CPA

1. Pecan Grove: job cost ledger not connected (Buildertrend sync pending), so cost seg is a benchmark estimate
2. State rate not entered (Texas has no income tax; confirm 0%)
3. state marginal rate 0% is a PLACEHOLDER: enter the builder's rate in Settings
4. 2025 is before the plan years, so no 1-year carryback of 2026 general business credit is modeled (39(a)(1)): CPA checks the 2025 return's room
5. 38(c) tentative minimum tax: for 2026, 2027, 2028, 2029, 2030, 2031, 2032, 2033, 2034, 2035, 2036, 2037, 2038, 2039, 2040, 2041, 2042, 2043, 2044, 2045, 2046, 2047, 2048, 2049, 2050, 2051, 2052, 2053, 2054 the credit limit takes TMT = 0 (an upper bound on credits used) because owner AMT inputs (net capital gain and qualified dividends; optional ISO bargain element, private activity bond interest, 56(a)(3) contract and other adjustments) is missing or not coded, and 45L is not a specified credit (38(c)(4)(B)), so AMT could cut the credit used each year: CPA review on Form 6251 / 3800 at the owner level
6. 448(c) small business status assumes the gross receipts entered include every person treated as one taxpayer under 448(c)(2) (single employer under 52(a)/(b) or 414(m)/(o), e.g. commonly owned framing, supply or other building entities). Confirm the aggregated figures before relying on the cash method, 263A(i), 471(c), 460(e)(1)(B) or 163(j)(3).
7. [rental_conversion_build_to_rent] What authority governs depreciable basis on converting builder inventory (FMV rule)?
8. [cost_segregation_new_construction] For a project begun before 2025-01-20 and placed in service in 2025-2026, can any 1245 components be treated as separately 'acquired' after 2025-01-19 (component election under Notice 2026-11 sec. 3.05 applies to larger self-constructed property that is itself qualified property)?
9. [cost_segregation_new_construction] Is the taxpayer a small business exempt from 263A and 163(j) for this year?
10. [bonus_depreciation_168k] For projects straddling 2025-01-19, is the component election or a separate-property argument available for later-installed 1245 items?
11. [bonus_depreciation_168k] Should the client elect 40% under 168(k)(10) for 2025 (e.g., to use expiring credits/NOLs or smooth income)?
12. [unicap_263a_small_business_exemption] Do any project LLCs allocate >35% of losses to non-managing members in loss years?
13. [unicap_263a_small_business_exemption] Will growth push the group over the threshold within 3 years, and is the round trip worth it?
14. [credit_45l] Is each entity the eligible contractor (owned and had basis during construction)?
15. [credit_45l] Which multifamily buildings meet PW and apprenticeship rules and have Form 7220 support?
16. [documentation_defense_file] Firm retention policy vs client retention policy
17. [cash_method_448] How are earnest money and customer deposits treated under the chosen method?

09Deadlines

• Jun 30, 2026 · 45L sunset: homes acquired after this date earn no credit (passed)
• Jan 1, 2027 · Next lien date (TX)
• May 15, 2027 · Property tax appeal deadline (TX)

10Disclaimers

11Sign-off

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