Commercial real estate tax planning built to help owners keep more of what they build.

A $4 million building. A $5 million sale. A $6 million replacement. Everyone says: exchange it. In our model, that came third out of four. Exchange under the default rules. Exchange with the election out. Study first, then exchange. Or sell outright. Here's the catch. For a used replacement building, generally only the new money qualifies for bonus depreciation. Exchange, and that's about $240,000. Sell, and it's $1.44 million. Now, the step almost nobody takes. His old building was never studied. A catch-up study can surface deductions he may have been entitled to all along. About $714,000. Roughly $264,000 in tax value, in the exchange year. Then he still exchanges. 10-year hold, 8% example return: study first, then exchange, is the best result we modeled. About $63,000 ahead of the next-best path, in today's dollars, before the cost of the study. A timing win. It's about when the tax gets paid. Change the facts, and the answer can change. A shorter hold can favor the default exchange. Trapped passive losses, or a small gain, can favor selling outright. It's an illustration, not a promise. Check it with your CPA. We do the math. You decide. jamiepope.com On-screen disclosure: Illustration only. Federal tax only; no state tax or debt. Assumes deductions are usable when taken. Confirm with your CPA and tax adviser.