Gian Pazzia

10/07/2026

10/05/2026

𝗔𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘀 𝗮𝗻𝗱 𝗲𝗻𝗴𝗶𝗻𝗲𝗲𝗿𝘀 𝗺𝗮𝘆 𝗯𝗲 𝗹𝗲𝗮𝘃𝗶𝗻𝗴 𝟭𝟳𝟵𝗗 𝘁𝗮𝘅 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝘂𝗻𝗰𝗹𝗮𝗶𝗺𝗲𝗱.

As design teams continue creating more energy-efficient buildings, it is important to understand how the 179D Tax Deduction works and when a project may qualify.

Some of the most common questions we hear include:
➢ How much is the 179D Deduction worth?
➢ What qualifies as an eligible improvement?
➢ What happens if the project is not 100% energy-efficient?
➢ Can a project qualify if it has been allocated before?
➢ Does solar qualify for 179D?

These questions can have a major impact on whether a designer successfully identifies and claims the available benefit.

If your firm designs government-owned or other qualifying buildings, reviewing completed and current projects may uncover opportunities that have been overlooked.

Let me know if this post helps you or someone you know. Follow me to get all my tax incentive updates!

10/01/2026

𝗪𝗵𝗮𝘁 𝗰𝗼𝘂𝗹𝗱 𝗰𝗼𝘀𝘁 𝘀𝗲𝗴𝗿𝗲𝗴𝗮𝘁𝗶𝗼𝗻 𝗱𝗼 𝗳𝗼𝗿 𝗮 $𝟯 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗮𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴?

I broke down this example with Michael Morawski on the Multifamily Unplugged podcast.

➢ Purchase price: $3 million
➢ Land value: $300,000
➢ Depreciable building value: $2.7 million
➢ Standard annual depreciation: about $100,000

With a cost segregation study, qualifying components are accelerated, creating $540,000 in first-year depreciation in this example. That is a major shift in timing and significantly improves near-term cash flow.

Thanks to Mike for the great conversation.

Let me know if this post helps you or someone you know. Follow me to get all my tax incentive updates!

Full episode link in the comments 👇

09/29/2026

𝗔𝗿𝗲 𝘆𝗼𝘂 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝗯𝗲𝘆𝗼𝗻𝗱 𝘁𝗵𝗲 𝗳𝗲𝗱𝗲𝗿𝗮𝗹 𝗥&𝗗 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁?

The federal credit often gets the most attention, but it may only be one part of the opportunity.

Many states offer their own R&D incentives, which can provide additional benefits for businesses investing in new products, processes, technologies, and improvements.

The challenge is that every state is different.

Eligibility requirements, calculations, limitations, and documentation can vary significantly. That’s why businesses—especially those operating in multiple states—should evaluate their R&D incentives as part of a broader tax strategy.

When state and federal opportunities are properly coordinated, companies can potentially capture greater value from investments they’re already making in innovation.

The question isn’t simply whether you’re claiming an R&D Tax Credit.

It’s whether you’re looking at the full incentive landscape.

09/22/2026

09/17/2026

How recapture tax works when you sell your building

For real estate owners, understanding this BEFORE a sale can help avoid some expensive surprises.

➢ Depreciation taken on the building is taxed at a 25% rate.
➢ Certain personal property identified through Cost Segregation is recaptured at ordinary income tax rates.
➢ That does NOT mean Cost Segregation was a bad strategy. Accelerating deductions can create significant upfront tax savings and a valuable time-value-of-money benefit.

Are there ways to avoid recapture?

➢ Properly retiring replaced assets and correctly identifying repairs can help avoid unnecessary recapture on assets that no longer exist.
➢ A 1031 Exchange may also allow you to defer both capital gains and depreciation recapture taxes.
The key is planning for the sale before the property is already under contract.

Let me know if this post helps you or someone you know. Follow me to get all my tax incentive updates!

KBKG breaks this down even further here: https://lnkd.in/gyBk7QSa

Shout out to Malik S Javed for writing this piece.

09/15/2026

How Bonus Depreciation Interacts With 1031 Exchange

In this conversation with Mike Morawski on the Multifamily Unplugged podcast, I explain an important point:
Cost segregation does not create deductions out of nowhere. It accelerates deductions you would otherwise take over time.

➢ Selling the property may trigger depreciation recapture
➢ A 1031 exchange can defer that recapture tax
➢ Bonus depreciation on the next property may help offset the tax impact of a future sale

This is where planning matters.
Work with a CPA who understands cost segregation, bonus depreciation and your long-term real estate strategy.
Managed correctly, these tools can significantly improve cash flow and defer taxes.

Full episode link in the comments 👇

09/10/2026

Hell’s Kitchen is a lot more fun when Gordon Ramsay isn’t yelling at you.

A great night out with my wife and son at Hell’s Kitchen.

You can tell Gordon Ramsay ’s fingerprints are all over the place.

✅ Attention to detail was everywhere
✅ Service was excellent
✅ The dishes were incredible
✅ And I’m happy to report nobody got thrown out of the kitchen

Definitely a night we’ll remember.

09/08/2026

Outsourcing R&D? 𝗬𝗼𝘂 𝗺𝗮𝘆 𝘀𝘁𝗶𝗹𝗹 𝗾𝘂𝗮𝗹𝗶𝗳𝘆 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗥&𝗗 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁.

Many companies assume that hiring outside contractors disqualifies their research expenses. That is not necessarily true.

Outsourced R&D activities may qualify when:

➢ The work is performed by contractors in the U.S.
➢ Your company retains the rights to the research
➢ Your company bears the financial risk
➢ Your team actively oversees or directs the work

Including qualified contractor expenses can significantly increase the credit.

The key is documenting the arrangement, responsibilities, payments, and research activities correctly. Before excluding outsourced R&D, have the contracts and project records reviewed.

Let me know if this post helps you or someone you know. Follow me to get all my tax incentive updates!