Prepared for CPA review · Ledgerline CPA Group

Wasatch Ridge Homes: tax study packet, tax year 2026

Prepared Oct 26, 2026 · scenario moderate · rates federal 37%, state 4.6%, 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 · Juniper Hollow (24 for-sale homes): 24 homes, credit $45,000, claimable $45,000; 6 homes earn none (cutoff or certification).

05Elections and positions

1. Foothill rentals (4 unsold specs kept as rentals): claim bonus depreciation on 5-, 7- and 15-year property (no election out); original return, Form 4562.
2. Juniper Hollow (24 for-sale homes): Form 3115 DCN 234 (Rev. Proc. 2025-23 sec. 12.16); 481(a) over 1 year(s).
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 $1,650,000 held flat: NOL carried past the last modeled year $0. Excess business loss 2026: $0.

07Documents

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

08Open questions for the CPA

1. Sage Flats lots: lot takedown schedule and development budget not uploaded
2. Juniper Hollow: 6 closing statements still missing (Aug-Sept closings)
3. Sage Flats lots (40 lots): no study inputs yet, so only screening estimates are shown
4. 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 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
5. 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).
6. [unicap_263a_small_business_exemption] Do any project LLCs allocate >35% of losses to non-managing members in loss years?
7. [unicap_263a_small_business_exemption] Will growth push the group over the threshold within 3 years, and is the round trip worth it?
8. [credit_45l] Is each entity the eligible contractor (owned and had basis during construction)?
9. [credit_45l] Which multifamily buildings meet PW and apprenticeship rules and have Form 7220 support?
10. [rental_conversion_build_to_rent] What authority governs depreciable basis on converting builder inventory (FMV rule)?
11. [cost_segregation_spec_and_model_homes] Is the home's basis on conversion cost or lower of cost/market (if inventory was written down)?
12. [cost_segregation_spec_and_model_homes] Rev. Rul. 89-25 text and any model-home case law to confirm
13. [bonus_depreciation_168k] For projects straddling 2025-01-19, is the component election or a separate-property argument available for later-installed 1245 items?
14. [bonus_depreciation_168k] Should the client elect 40% under 168(k)(10) for 2025 (e.g., to use expiring credits/NOLs or smooth income)?
15. [dealer_vs_investor_status] Which circuit controls this client's tax appeals?
16. [dealer_vs_investor_status] Is a change-of-purpose allocation supportable for this parcel?

09Deadlines

• Jun 30, 2026 · 45L sunset: homes acquired after this date earn no credit (passed)
• Jan 1, 2027 · Next lien date (UT)
• Sep 15, 2027 · Form 3115 (DCN 234) for 2026
• Sep 15, 2027 · Property tax appeal deadline (UT)

10Disclaimers

11Sign-off

Until a CPA reviews and releases a study in the app, its pages read “Ready for your CPA's review”.