Tax Smart Real Estate Investors Podcast

382. Can Real Estate Developers Use Cost Segregation & Bonus Depreciation?

Tax Smart Real Estate Investors Podcast

Show Notes

In this episode of the Tax Smart REI Podcast, Thomas Castelli and Nathan Sosa break down one of the most misunderstood areas of real estate taxation: how developers are taxed and when they can (and can't) take advantage of cost segregation and bonus depreciation.

They explain the key difference between developers who build to sell versus developers who build to hold, why dealer status can eliminate depreciation benefits, and how entity structure decisions can impact your ability to defer taxes, execute 1031 exchanges, and maximize long-term wealth.

Request a consultation from Hall CPA at go.therealestatecpa.com/3KSEev6

Get the FREE Ultimate STR Tax Strategy Bundle: go.therealestatecpa.com/strbundle

Register for the FREE Investing Debate: go.therealestatecpa.com/debate

Submit your question for Tom & Nathan: go.therealestatecpa.com/question

The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.

More from Tax Smart Real Estate Investors Podcast

Oct 22, 2026

What happens when AI makes information a commodity and the old real estate categories stop working?

Oct 20, 2026

In this episode of the Tax Smart REI podcast, Tom and Nate break down the core tax strategy playbook used by real estate investors and high-income earners to minimize their tax burden before year-end. They dive deep into the real estate professional status (REPS) requirements, the short-term rental loophole, grouping elections, cost segregation, and 100% bonus depreciation.

Oct 15, 2026

Neal Bawa, a former tech founder who has invested in apartments since 2013, joins Nate and Tom to talk about using data to make real estate decisions. He explains why he passed on investing in Huntsville, Alabama, despite its growth, and where he sees multifamily rents heading over the next two years.

Oct 13, 2026

In this episode of the Tax Smart REI podcast, Tom and Nate welcome Julia Fritzlen of Insight Investment Advisors to talk about helping real estate owners exit without a large tax bill.

Oct 8, 2026

Nobody wants to talk about insurance until something goes wrong. In this episode of the Major League Real Estate Podcast, Nate and Tom walk through real court cases and news stories showing how real estate investors lose coverage over technicalities, from misstating a property's use (single-family vs. short-term rental) to deeding it to an LLC or family trust without updating the policy.

See all episodes →