Client Profile

Client Name: Finance Executive
Occupation: Finance Manager & Real Estate Investor
Annual Income: $800,000+

Primary Goals:

• Reduce tax burden on high W-2 wages

• Unlock deductions from real estate portfolio

• Convert passive losses into active tax savings

• Build a repeatable, IRS-compliant tax plan

The Tax Challenge: High-Income, High-Tax Pressure

This client, a successful finance manager earning over $800,000 annually, was losing nearly half of his paycheck to federal and state taxes.

Despite owning multiple rental properties and even qualifying for Real Estate Professional Status (REPS), his former CPA failed to apply the right strategies. As a result, passive losses sat idle year after year, offering no real relief.

What he needed wasn’t just a tax preparer, he needed a real estate CPA with proactive planning expertise.

The Strategy: REPS + Cost Segregation + Custom Planning

1. Real Estate Professional Status (REPS) Optimization  

We confirmed and documented REPS status, allowing the client’s rental losses to be classified as non-passive. This meant those losses could directly offset his W-2 income.

Why it matters: Most high earners are limited by passive loss rules, but REPS allows strategic reclassification to unlock significant tax offsets.

2. Cost Segregation Studies  

We performed engineering-based cost segregation studies across his rental portfolio, accelerating depreciation deductions.

This allowed the client to capture bonus depreciation on short-life assets like appliances, flooring, and fixtures, creating large paper losses immediately without reducing cash flow.

Bonus insight: Cost segregation is one of the most powerful tools available to real estate professionals, especially when combined with REPS.

3. Custom Real Estate Tax Plan  

We built a comprehensive, forward-looking tax plan tailored to his income streams, real estate portfolio, and long-term investment goals.

This blueprint ensured maximum deductions, strategic timing of conversions, and compliance with IRS standards.

The Results: $236,000 Saved in Just One Year

With the new strategy, the client achieved:

• $236,000 in tax savings in a single year

• Reduced taxable income directly against W-2 wages

• More cash flow to reinvest in real estate and wealth-building ventures

• A repeatable, IRS-compliant strategy for future years

Takeaway: Real Estate Pros Can Save More with the Right CPA

Even high-income earners with multiple properties often miss out on savings because their CPAs don’t apply advanced real estate strategies. This case proves that with REPS optimization, cost segregation, and a proactive plan, six-figure savings are not only possible, but they’re also repeatable.

Need help creating your own REPS + Real Estate Tax Strategy?

Just like this finance executive, you could save six figures annually with the right plan.

[Book Your Strategy Session Now]

📞 Call Us Toll-Free: +1 800-522-6091

‍📧 Email: clients@investorfriendlycpa.com

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Curious? Read another success story: See how a military family saved $10,000 with targeted tax planning.