Savings

• Cost seg study · Harbor Pointe Apartments (180 units)

  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 (180 homes) · Harbor Pointe Apartments (180 units)

  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.

• Energy-efficient building deduction · Harbor Pointe Apartments (180 units)

  Rate per square foot is from the statute table. The savings percentage needs a certified energy model (ASHRAE 90.1 reference building).

  Medium: needs a qualified third-party certification, plus prevailing wage and apprenticeship records for the higher rate.

• Cost seg (benchmark estimate) · Bayshore Medical Office (62,000 sq ft)

  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 · Bayshore Medical Office (62,000 sq ft)

  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).

• Inventory cost rules (interest 263af) · Seabreeze Condominiums (64 presold units)

  Computed from the units on hand at the start and end of the year; the tax form change number 224.

  Automatic method change: audit protection for prior years once the tax form is filed on time.

• Home-sale income timing timing · Seabreeze Condominiums (64 presold units)

  Uses estimated total contract costs; the percentage-of-completion look-back reallocates income when actual costs differ.

  Completed-contract method is allowed for home construction contracts; keep contract dates and cost reports.

Audit risk is a plain-language note, never a guarantee.

• ⇄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)
• ⇄energy-efficient building deduction reduces the building's building cost, so cost seg and later depreciation are lower
• ⇄Look-back: the tax form change number 7 with a negative (favorable) one-time catch-up adjustment in 2026
• ⇄inventory cost rules and 460 work together: costs capitalized to homes come out of income only as homes close (or as contracts complete)
• ⇄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.
• Harbor Pointe Apartments (180 units): building cost reduced by the energy-efficient home credit before cost seg and bonus.
• Harbor Pointe Apartments (180 units): energy-efficient building deduction reduces basis of the same HVAC/lighting/envelope components the cost seg study classifies; do not double count.
• RPTOB election not made: keep bonus on QIP and 27.5/39-year the IRS depreciation schedule. Electing would bind every real property project; compare before electing.

• passedenergy-efficient home credit sunset: homes acquired after this date earn no credit · Jun 30, 2026
  Close or lease certified homes by this date; later homes get nothing
• passedenergy-efficient building deduction sunset: construction must begin by this date · Jun 30, 2026
  Document the construction start (physical work or 5% safe harbor)
• 67 daysNext lien date (FL) · Jan 1, 2027
  Photograph and document construction status and condition as of this date (draw inspections, CO dates)
• 317 daysProperty tax appeal deadline (FL) · Sep 8, 2027
  File the appeal with the evidence checklist
• 354 daysthe tax form (change number 224) for 2026 · Oct 15, 2027
  Attach to the timely filed return (with extensions); send the duplicate copy to the IRS by the same date
• 354 daysthe tax form (change number 7) cost seg look-back for 2026 · Oct 15, 2027
  Attach to the timely filed return (with extensions); duplicate copy to the IRS

1. Seabreeze condos: R&D project narratives not started
2. Bayshore Medical: tenant improvement allowance split not uploaded
3. conservative: 450000 of 2026 general business credit carried back to 2025 (39(a)(1)); the refund is claimed after 2026 (Form 1139/1045 or an amended 2025 return): CPA files
4. moderate: 450000 of 2026 general business credit carried back to 2025 (39(a)(1)); the refund is claimed after 2026 (Form 1139/1045 or an amended 2025 return): CPA files
5. aggressive: 502977 of 2026 general business credit carried back to 2025 (39(a)(1)); the refund is claimed after 2026 (Form 1139/1045 or an amended 2025 return): CPA files
6. R&D credit (Seabreeze Condominiums (64 presold units)): needs a CPA decision. Builder reports genuine design/engineering experimentation not funded by a customer: screen for 41 credit (high risk; 174A and 280C(c) interplay).

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