The IRS Tangible Property Regulations contain some of the most underutilized deductions available to property owners. We make sure you're not leaving them on the table.
The IRS Tangible Property Regulations (TPRs), finalized in 2013, define the rules for when property costs must be capitalized versus immediately expensed. Many property owners — and even their CPAs — are not fully leveraging the safe harbors and election opportunities these rules provide. Innovate Real Estate conducts thorough TPR reviews to identify missed expensing opportunities, partial asset dispositions, and de minimis safe harbor elections that generate immediate deductions.
Our process is thorough, IRS-compliant, and built around your schedule.
We analyze your existing depreciation schedule to identify assets eligible for write-off under TPR rules.
When you replace a structural component (roof, HVAC, windows), we write off the retired asset immediately rather than continuing to depreciate it.
We apply the correct IRS tests to determine whether expenditures qualify as deductible repairs or must be capitalized.
We coordinate with your CPA to file the correct TPR elections with your tax return, securing the deductions permanently.
What you gain by working with Innovate Real Estate on tangible property regulations.
Deduct the remaining book value of replaced components in the year of replacement.
Qualify routine maintenance and non-capitalized improvements as current-year deductions.
Elect to expense items costing less than $2,500 (or $5,000 with audited financials) per invoice.
Apply TPR corrections to prior years via accounting method changes — no amended returns needed.
Works alongside a cost seg study to maximize the full spectrum of deductions on a property.
Clients consistently lower their effective tax rates by 3–8 percentage points through TPR strategies.
Submit your property details and we'll prepare a free estimate of your potential tax savings — no obligation.
Request Free ProposalWhen you replace a structural component — like a roof — you can write off whatever's left of the original roof's depreciated value rather than continuing to depreciate something that no longer exists.
No. TPR corrections are made through accounting method changes (Form 3115), which allow catch-up deductions in the current year.
Cost seg is a forward-looking engineering study on purchase or construction. TPR work often focuses retroactively on replacements and repairs you've already made.
Let our team analyze your property and show you exactly how much you could be saving.