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Ledgerline clients Brazos Rental Communities
Savings
Partnership · TX · tax year 2026 · Austin, TX · contact Ana Villarreal, Controller
Estimated value after our fee
$847,044
Range $696,021 (conservative) to $1,052,532 (aggressive). Discounted at 7%; fees $11,395.
Overall confidence: low 8 line(s) rest on estimates or open facts; see below.
- Cash saved 2026
- $407k
- Our fees, already subtracted
- $11k
- How we got it
Faster depreciation (cost segregation): Cypress Bend BTR $411,081 Faster depreciation (cost segregation): Pecan Grove BTR phase 2 $266,726 Energy-efficient home credit $132,900 Property tax appeal $3,105 Small-business exemption from inventory cost rules (no study needed): Cypress Bend BTR $125,665 Small-business exemption from inventory cost rules (no study needed): Pecan Grove BTR phase 2 $82,467 Estimated value after our fee $847,044
2026 tax as filed now
$407,000
With the plan
$0
Difference
+$407,000
Business income $1,100,000 (intake) at the federal rate; state and credits are in the difference. Owner-level items are for your CPA. The plan saves $0 more than this year's tax; that part is state tax saved or carries forward to later years.
Where the value comes from
- Faster depreciation (cost segregation)
- Energy-efficient home credit
- Property tax appeal
- Other ideas (rough estimate)
- Loss limits
Table view
| Year | Cash tax saved | By strategy |
|---|---|---|
| 2026 | $407,000 | Faster depreciation (cost segregation) $1,237,173 · Energy-efficient home credit $135,000 · Other ideas (rough estimate) $437,138 · Loss limits −$1,402,311 |
| 2027 | $390,673 | Faster depreciation (cost segregation) −$45,984 · Property tax appeal $3,745 · Other ideas (rough estimate) −$73,462 · Loss limits $506,373 |
| 2028 | $363,334 | Faster depreciation (cost segregation) −$45,984 · Other ideas (rough estimate) −$14,262 · Loss limits $423,580 |
| 2029 | $313,551 | Faster depreciation (cost segregation) −$45,984 · Other ideas (rough estimate) −$14,262 · Loss limits $373,796 |
| 2030 | $38,316 | Faster depreciation (cost segregation) −$45,984 · Other ideas (rough estimate) −$14,262 · Loss limits $98,562 |
| 2031 | −$60,246 | Faster depreciation (cost segregation) −$45,984 · Other ideas (rough estimate) −$14,262 |
| 2032 | −$60,246 | Faster depreciation (cost segregation) −$45,984 · Other ideas (rough estimate) −$14,262 |
| 2033 | −$60,246 | Faster depreciation (cost segregation) −$45,984 · Other ideas (rough estimate) −$14,262 |
| 2034 | −$60,246 | Faster depreciation (cost segregation) −$45,984 · Other ideas (rough estimate) −$14,262 |
| 2035 | −$60,253 | Faster depreciation (cost segregation) −$45,991 · Other ideas (rough estimate) −$14,262 |
| 2036+ | −$1,072,893 | Faster depreciation (cost segregation) −$823,313 · Other ideas (rough estimate) −$249,580 |
Cash, not discounted. Timing strategies go negative in later years when the deduction reverses; that is expected.
Every line
same numbers as the chart; click a number for its source
| Study · project | Kind | Status | Value | Fee | After fee | Confidence · audit risk | Effort |
|---|---|---|---|---|---|---|---|
Cost seg study Cypress Bend BTR (60 homes) ⇄ Recapture at exit | Timing | Applies | $416,031 | $4,950 | $411,081 | Confidence: mediumAudit risk: low | 4 CPA files |
Energy-efficient home credit (60 homes) Cypress Bend BTR (60 homes) ⇄ energy-efficient home credit basis reduction | Credit | Applies | $135,000 | $2,100 | $132,900 | Confidence: highAudit risk: low | 2 Collect certificates |
Cost seg (benchmark estimate) Pecan Grove BTR phase 2 (40 homes) ⇄ Recapture at exit | Timing | Applies | $270,676 | $3,950 | $266,726 | Confidence: lowAudit risk: high | 3 Engineering study |
Property tax appeal Hays County spec inventory (5 homes) | Permanent | Calculated | $3,500 | $395 | $3,105 | Confidence: mediumAudit risk: low | 2 File appeal |
Small business exemption (screening): Cypress Bend BTR Cypress Bend BTR (60 homes) | Timing screening | Applies | $125,665 | $0 | $125,665 | Confidence: lowAudit risk: medium | 1 Estimate |
Small business exemption (screening): Pecan Grove BTR phase 2 Pecan Grove BTR phase 2 (40 homes) | Timing screening | Applies | $82,467 | $0 | $82,467 | Confidence: lowAudit risk: medium | 1 Estimate |
Small business exemption (screening): Hays County spec inventory Hays County spec inventory (5 homes) | Timing screening | Applies | $3,873 | $0 | $3,873 | Confidence: lowAudit risk: medium | 1 Estimate |
Credit limit: 38(c) general business credit Company-wide ⇄ 38(c) | Timing | Applies | −$11,876 | $0 | −$11,876 | Confidence: mediumAudit risk: low | 4 CPA computes |
Loss limits: the excess business loss limit excess business loss and 80% loss carried forward Company-wide ⇄ the excess business loss limit | Timing | Applies | −$166,897 | $0 | −$166,897 | Confidence: mediumAudit risk: low | 4 CPA computes |
| Total, moderate | $858,439 | $11,395 | $847,044 | ||||
Confidence and audit risk, in words
Cost seg study · Cypress Bend BTR (60 homes)
Built from the job-cost ledger with a source for every dollar; 1 line(s) still need a classification decision.
Detailed engineering approach from actual costs, matching the IRS audit guide's preferred method. Keep the audit binder.
Energy-efficient home credit (60 homes) · Cypress Bend BTR (60 homes)
Per-home credit amounts come straight from the statute table. Each home needs its HERS / ENERGY STAR certificate.
Low when every home has a dated certification and a closing statement. Missing certificates are the common failure.
Cost seg (benchmark estimate) · Pecan Grove BTR phase 2 (40 homes)
Benchmark percentages only: an estimate, not a study. An engineering study must replace it.
Do not file on a benchmark estimate. Examiners reject desktop or percentage studies (IRS audit guide ch. 4).
Property tax appeal · Hays County spec inventory (5 homes)
Evidence is adequate; the missing items on the checklist would strengthen the appeal.
An appeal can only lose the argument, not add tax; some states let the board raise the value (check the state rules).
Small business exemption (screening): Cypress Bend BTR · Cypress Bend BTR (60 homes)
Screening estimate from a planning formula; no study inputs yet.
Not filed from this number: the study sets the real figure.
Small business exemption (screening): Pecan Grove BTR phase 2 · Pecan Grove BTR phase 2 (40 homes)
Screening estimate from a planning formula; no study inputs yet.
Not filed from this number: the study sets the real figure.
Small business exemption (screening): Hays County spec inventory · Hays County spec inventory (5 homes)
Screening estimate from a planning formula; no study inputs yet.
Not filed from this number: the study sets the real figure.
Audit risk is a plain-language note, never a guarantee.
Where strategies interact
- Recapture at exit: the extra depreciation is taxed back on a sale (personal property at ordinary rates, unrecaptured building property at up to 25%) unless exchanged under 1031
- energy-efficient home credit basis reduction: the credit lowers the home's basis (cost of sales for sold homes; building cost for rentals, S4)
- 38(c): credits used each year are capped by income tax; the unused credit carries back 1 year and forward 20 (Form 3800)
- the excess business loss limit: noncorporate business losses above the yearly threshold become an loss carried forward, usable at 80% of later taxable income
- Mixed portfolio: inventory projects get 460/inventory cost rules/energy-efficient home credit treatment only; cost seg, bonus and 179 are limited to the rental, commercial and remodel projects.
- Cypress Bend BTR (60 homes): building cost reduced by the energy-efficient home credit before cost seg and bonus.
- Excess business loss (the excess business loss limit): first-year study deductions exceed business income plus the threshold; the excess becomes an loss carried forward carryforward.
Effort ladder
what each strategy takes to get
1
Estimate
Two minutes. Benchmarks and planning formulas.
- Small business exemption (screening): Cypress Bend BTRAnswer the intake questions for this strategy to run the calculator.
- Small business exemption (screening): Pecan Grove BTR phase 2Answer the intake questions for this strategy to run the calculator.
- Small business exemption (screening): Hays County spec inventoryAnswer the intake questions for this strategy to run the calculator.
- Small business exemption (screening): Cypress Bend BTR
2
Collect documents
Certificates, notices, closing statements.
- Energy-efficient home credit (60 homes)Pull HERS rater certificates and closing dates for each home, then file the tax form.
- Property tax appealFile by 2027-05-15 with the evidence checklist.
- Energy-efficient home credit (60 homes)
3
Specialist study
Engineering, energy model or R&D documentation.
- Cost seg (benchmark estimate)Order a detailed cost seg study (site visit plus job-cost tie-out), typically 2 to 6 weeks.
- Cost seg (benchmark estimate)
4
CPA files
Your CPA puts it on the return.
- Cost seg studyCPA enters the asset schedule on the tax form (and the tax form for a look-back).
- Cost seg study
Deadlines and sunsets
- passedenergy-efficient home credit sunset: homes acquired after this date earn no credit · Jun 30, 2026Close or lease certified homes by this date; later homes get nothing
- 67 daysNext lien date (TX) · Jan 1, 2027Photograph and document construction status and condition as of this date (draw inspections, CO dates)
- 201 daysProperty tax appeal deadline (TX) · May 15, 2027File the appeal with the evidence checklist
What would change the number
- Pecan Grove: job cost ledger not connected (Buildertrend sync pending), so cost seg is a benchmark estimate
- State rate not entered (Texas has no income tax; confirm 0%)
- state marginal rate 0% is a PLACEHOLDER: enter the builder's rate in Settings
- 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
- 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 energy-efficient home credit 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
Research tool for CPA review; not tax advice. Planning estimates at the builder's rates; a CPA confirms every item before filing. Rates: federal 37%, state 0%. state marginal rate 0% is a PLACEHOLDER: enter the builder's rate in Settings Run brazos-btr-2026-moderate · as of Oct 26, 2026 · 9 lines.