Mid-Year Real Estate Tax Review Checklist #TaxTips

If you own investment real estate, the single most impactful thing you can do for your 2026 tax return is schedule a portfolio review right now, before Q4 gets busy. Here's a practical checklist for the mid-year real estate review: COST SEGREGATION: Have all properties acquired since January 19, 2025 been analyzed for cost seg? With 100% bonus depreciation fully restored, every eligible property without a study may be leaving significant first-year deductions unclaimed. PASSIVE LOSS TRACKING: Do you know your accumulated passive loss carryforward across all properties? These losses are sitting on your Schedule E and can be released when you sell a property. UNDERPERFORMING ASSETS: Are there any properties with unrealized losses, properties worth less than their adjusted basis? A strategic sale before December 31 could generate losses that offset other gains. ENTITY REVIEW: As your portfolio grows, has your structure kept pace? Properties added without updating the entity structure can create liability exposure and tax inefficiency. DEPRECIATION RECAPTURE PLANNING: For any properties you're considering selling, map out the recapture exposure now, before you negotiate price. This review isn't about finding problems. It's about finding opportunities before the window closes.