The 2025 IRS Rule Update To Look Out For


Check out my episode on the Real Estate Pros Podcast!

video preview

Looking for a Cost Seg Study for your property?


Today’s topic: The 2025 IRS rule that could change your cost segregation study.

For years, many cost seg firms have accelerated kitchen cabinets, countertops, and sinks into 5-year property. But new 2025 IRS guidance makes it clear: these are structural components and must be depreciated over 27.5 or 39 years.

In this article, we break down:

  • The exact changes in the 2025 IRS Audit Technique Guide
  • Why cabinets and counters are no longer 5-year property
  • The limited exceptions (and documentation) that still exist
  • Why some cost seg providers are ignoring the update
  • 3 questions every multifamily investor should ask their CPA
  • How to avoid audit risk and stay compliant going forward

“A lot of firms are still doing it the old way. But the IRS has drawn a hard line and ignoring it could create major audit exposure.”

Check out the full article to make sure your next study is done right:


Thank you for reading. Please reach out and let me know what resonated with you. I read every email!

Cheers,

Sean

CPA | Founder of Maven Cost Seg

P.S. Forwarded this email? Click here to make sure you get added to the weekly distribution list!

113 Cherry St #92768, Seattle, WA 98104-2205
Unsubscribe · Preferences

Hi, I'm Sean!

Every week I share tips on real estate taxes, cost segregation, and navigating the entrepreneurship journey. Enter your email below to sign up for the Maven Newsletter!

Read more from Hi, I'm Sean!

Check out our feature on REtipster! Looking for a Cost Seg Study for your property? Book a call with me to discuss! Today’s topic: How limited partners can use real estate syndication losses to offset active income. Most LPs assume syndication losses are passive—and useless against W-2 or business income. But with the right strategy, those losses can deliver real active tax savings. In this article, we break down: Why syndication losses are usually passive (and what that means) The key...

Looking for a Cost Seg Study for your property? Book a call with me to discuss! Today’s topic: Marginal vs. Effective Tax Rates and why this distinction matters more than most realize. A lot of people think that earning more means they’ll “get taxed on all of it.” That’s not how our tax system works — and believing that can lead to some costly decisions. In this article, we break down: The difference between marginal and effective tax rates Why hitting a new tax bracket doesn’t raise your tax...

Looking for a Cost Seg Study for your property? Book a call with me to discuss! I get this question all the time: “How much would a cost seg study actually save me?” So my team and I decided to build the Maven Cost Segregation Calculator to give folks a quick, realistic estimate of how much they can save based on property type, tax rate, and a few other inputs. But most people don’t know what those inputs really mean, or how lease type, depreciable basis, and bonus depreciation all factor in....