By Nick Coppola | Tax Logic™ — Turning IRS Rules into Growth Capital
💡 What’s a Sale-Leaseback?
A sale-leaseback is one of the most underused strategies in commercial real estate.
In simple terms, an owner sells their property and immediately leases it back from the buyer.
This structure converts equity into cash without losing operational control.
It creates two entities:
- PropCo (Property Company): owns the building
- OpCo (Operating Company): runs the business
It’s a proven model in healthcare, hospitality, manufacturing, and retail portfolios, where operators want liquidity but also long-term stability.
🧩 Why It Matters for Tax Strategy
Once the sale closes, the PropCo becomes the tax owner — and that opens the door to accelerated depreciation through Cost Segregation.
Instead of depreciating a building over 39 years, PropCo can front-load deductions into the first few years of ownership.
That means:
✅ Stronger early-year cash flow
✅ Higher after-tax IRR
✅ Faster reinvestment of capital
⚙️ How Cost Segregation Amplifies the Benefits
Cost Segregation breaks down a building into components with different depreciation lives:
- 5–7 year property: fixtures, finishes, electrical systems
- 15-year property: paving, landscaping, site work
- 39-year property: structural shell
In 2025, bonus depreciation remains 60%, allowing investors to claim a majority of deductions upfront.
When paired with a sale-leaseback, these deductions can translate into hundreds of thousands in year-one tax savings.
📊 Example: $10 Million Sale-Leaseback
A $10M asset could yield $1.5–$2 million in accelerated depreciation, producing $500K–$800K in first-year tax savings.
That’s real cash flow that can be reinvested into new acquisitions, renovations, or debt reduction — all without taking on new financing.
🧠 The Tax Logic™ Proof Stack
At Tax Logic™, we go beyond cost segregation.
We layer multiple IRS-backed incentives — what we call the Proof Stack™:
- Cost Segregation with CSSI
- Green Zip™ reusable non-load-bearing walls (classified as 5-year property)
- Section 179D energy-efficiency deductions
- PropCo/OpCo optimization
- R&D tax credits for design and engineering innovation
Together, these create a measurable advantage: more deductions, stronger after-tax ROI, and higher property valuations.
🇺🇸 The Patriotic Capital Effect
Every dollar retained through these strategies stays working inside U.S. projects — funding jobs, innovation, and sustainable construction.
That’s Patriotic Capital Recycling™ — aligning financial performance with national economic impact.
🤝 Let’s Build Your Sale-Leaseback Strategy
If you own or operate commercial real estate — especially in healthcare, hotels, or manufacturing — it’s time to look at how a PropCo/OpCo sale-leaseback combined with cost segregation can unlock trapped capital.
Partner with Tax Logic™ + CSSI to:
✅ Evaluate your sale-leaseback opportunities
✅ Model your PropCo/OpCo structure
✅ Quantify your after-tax ROI
📩 Email: [email protected]
🌐 Visit: theuniversedecoded.com/ | GreenZipTape.com
🏁 Final Thought
The IRS doesn’t necessarily want your money today — they just want you to account for it.
A sale-leaseback paired with cost segregation is how you account strategically.
That’s Tax Logic™ — turning IRS rules into growth capital.
