In this episode of Tax Tuesday, Anderson Advisors’ Barley Bowler, CPA, and Eliot Thomas, Esq., answer listener questions covering real estate taxation, depreciation, capital gains, Real Estate Professional Status, R&D tax credits, and retirement planning. They discuss whether a loss from deeding a timeshare back to the developer may be deductible, and break down which activities can count toward the 750-hour requirement for qualifying as a Real Estate Professional.
Real Estate Tax Strategies, Bonus Depreciation, and Capital Gains
Barley and Eliot also explore tax strategies for 30-day rentals, including how concierge services may affect the tax treatment of rental activity, and review rental property expenses that may qualify for first-year bonus depreciation. They discuss strategies to consider before selling a second home or commercial rental property, as well as ways to potentially reduce corporate and individual income taxes following the sale of a corporation.
Additional topics include the tax treatment of long-term appreciated assets under current tax law, how R&D tax credits may apply to S corporation owners and employees, and the potential tax advantages and disadvantages of cash balance plans. Tune in for practical tax strategies, real estate insights, and answers to listener questions from Barley and Eliot.
Submit your tax question to taxtuesday@andersonadvisors.com
Highlights/Topics:
[00:00] Intro to Tax Tuesday with Eliot and Barley
[10:38] “I had a timeshare which I rented for a few years. This year, I deeded it back to the developer. Can I deduct the loss for tax return purposes? The cost will be my entire investment, for which I received zero return from the developer.”
[20:50] “Could you review a list of potential activities that would qualify toward the 750-hour requirement when filing as a Real Estate Professional?”
[33:12] “What concierge services for a 30-day rental satisfy the criteria for short-term tax reduction? Our township does not allow rentals shorter than 30 days.”
[41:30] “Can you review specific rental expense categories that qualify for first-year bonus depreciation?”
[50:16] “I have a second home and a commercial rental property that I plan to sell. What do I need to do now to minimize capital gains on both?”
[1:05:15] “How can I lower my 2025 corporate income tax after selling a corporation, and how can I lower my individual income tax resulting from the sale?”
[1:10:18] “Based on the new tax laws, if my wife and I sell appreciated assets held for more than 12 months, can we claim zero federal tax on up to $98K (married couple) plus a $47,500 general exemption for a total of $145,500 tax-free?”
[1:15:13] “I have a new S corporation that didn’t make money in 2025, but had my partnership assigned to it (the corporation is a holding company now) for 2026. How do R&D credits work for myself and my business partner, who are both employees of the S corporation, for our 2026 taxes being filed in 2027?”
[1:22:36] “What are the advantages and disadvantages of a cash balance plan regarding taxes?”
Resources:
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