Many commercial real estate (CRE) builders, developers, and owners assume the tax code exists just to collect their money.
But the truth is:
The tax code was written to reward you for building.
When you create, improve, and manage commercial properties, you’re fueling the economy, creating jobs, and providing spaces communities need. That’s why the IRS offers tax incentives to help you save, grow, and keep your capital working.
Here are four powerful ways the tax code rewards CRE builders like you.
🔷 1️⃣ Accelerated Depreciation (Cost Segregation)
Rather than depreciating your property evenly over 27.5 or 39 years, cost segregation allows you to break down the property into components (like lighting, HVAC, and flooring) and depreciate some of them much faster — often in 5, 7, or 15 years.
👉 This puts more cash back in your pocket early so you can reinvest sooner.
🔷 2️⃣ 1031 Exchange
If you sell a property and reinvest the proceeds into another “like-kind” property, you can defer paying capital gains taxes.
👉 This keeps your capital working for you instead of handing it over to the IRS — allowing your portfolio to grow more efficiently.
🔷 3️⃣ 179D Energy Efficiency Deduction
When you install energy-efficient upgrades — such as improved lighting, HVAC, or building envelope systems — you may qualify for the 179D deduction.
👉 This directly reduces your taxable income while improving your property’s sustainability and appeal.
🔷 4️⃣ Bonus Depreciation
Certain improvements and equipment purchases can qualify for bonus depreciation, which lets you write off a significant portion of the cost in the first year — rather than spreading it over decades.
👉 Another way to maximize deductions early and improve cash flow.
💡 Bottom line:
The tax code was designed to encourage you to keep building, growing, and improving.
Don’t leave these benefits on the table — put them to work for your business and your future.
At Tax Logic™, we help CRE stakeholders use the tax code the way it was intended:
✅ To grow your properties
✅ To preserve your wealth
✅ And to keep more of what you earn
📩 Before you write that check, let’s talk.
You might not have to.
