Real Estate Owners: Focus on Cash Flow and Long-Term Positioning

Plan Capital Improvements Carefully

With depreciation benefits continuing to evolve, the timing of renovations and upgrades matters. Grouping improvements strategically may allow you to optimize depreciation deductions while maintaining strong cash flow.



Review Rental vs. Short-Term Use Classifications

If you operate short-term rentals, confirm whether you meet material participation thresholds. Proper classification can open the door to deducting losses against non-passive income.

Prepare for Capital Gains in Advance

Selling property in 2026? Early modeling of capital gains, depreciation recapture, and installment sale options can prevent unpleasant surprises and improve after-tax proceeds.