What if you could use cost segregation not only to accelerate depreciation, but also to reduce capital gains taxes and even offset income across multiple properties?

In this episode, Angel Williams continues her conversation with Gian Piazza from KBKG to dig deeper into advanced tax strategies. Gian explains how energy efficiency incentives like Section 179D and PACE loans work, what passive investors need to know before starting, and why planning ahead for recapture and 1031 exchanges is so important. You’ll also learn how small property owners can now access tools once reserved for big investors, and how long-term planning creates significant wealth-building opportunities.

[00:01 - 05:00] Beyond the Basics of Cost Segregation

• How smaller property owners can now leverage cost segregation

• The phase-out of energy tax incentives and what it means for investors

• Section 179D deductions explained for larger commercial projects

[05:01 - 10:00] Energy Incentives and Financing Options

• How PACE loans finance energy retrofits while preserving capital

• Pairing loans with deductions for additional leverage

• Property tax considerations with energy-focused financing

[10:01 - 14:30] First Steps for New Rental Owners

• What investors should do immediately after buying a rental property

• Why choosing the right tax advisor makes all the difference

• How passive investors approach deductions differently

[14:31 - 18:00] Offsetting Income and Capital Gains

• Using cost segregation across multiple properties to reduce tax liability

• How deductions can offset both passive income and capital gains

• When cost segregation may not be the right choice

[18:01 - 22:30] Recapture, 1031 Exchanges, and Long-Term Strategy

• What depreciation recapture means and why it matters

• How 1031 exchanges help protect investors from recapture

• The wealth-building strategy of exchanging until step-up in basis

Connect with Gian: https://www.linkedin.com/in/costsegregationservices/

Key Quotes:

“Passive investors have to be careful—you need the right structure to actually benefit from cost segregation.” – Gian Piazza

“If you’re thinking long-term, exchanges and planning for recapture are just as important as the deductions you get up front.” – Angel Williams

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