I want you to sit with one number: $177,500. That's the tax bill one of my clients avoided entirely — not through a loophole, but by understanding how step-up in basis actually works for real estate investors.

In this episode of The Tax Strategy Playbook, I walk through the 5 best assets you can leave your heirs and the 5 worst estate planning traps real estate investors fall into — traps that can cost families six figures in avoidable taxes and legal fees.

You'll learn:

✅ How step-up in basis can erase capital gains and depreciation recapture at death

✅ Why holding property in an LLC + revocable living trust keeps your estate out of probate

✅ How cost segregation studies compound across generations

✅ How real estate depreciation can fund tax-free Roth IRA conversions for your heirs

✅ Why an ILIT (irrevocable life insurance trust) solves the liquidity problem real estate creates

✅ The 5 worst mistakes: undivided ownership interests, unplanned depreciation recapture, un-documented short-term rental businesses, oversized traditional IRAs, and property left entirely in your personal name

✅ How the 2025 One Big Beautiful Bill Act (OBBBA) changed bonus depreciation and the federal estate tax exemption for 2026

Real-world case study included: how the "Wilsons" — a couple with a $4.4M real estate portfolio — could lose $350K–$500K in unplanned taxes and fees, or preserve it with proper structure.

If you're a real estate investor with rental or commercial property and you've never had a real conversation about how your portfolio and your estate plan fit together, this episode gives you the questions to ask and the gaps to close.

⏱️ Want cost segregation, a 179D lookback study, or an R&D credit study for your own portfolio? Link in the description to book a call with our team.

🔔 Subscribe to The Tax Strategy Playbook for a new episode every Tuesday.

📌 Topics covered: step-up in basis, cost segregation, LLCs and revocable living trusts, depreciation recapture, Roth IRA conversions, ILITs, bonus depreciation under OBBBA, 1031 exchanges, short-term rental succession planning, and probate avoidance for real estate investors.

Disclaimer: This content is for general educational purposes and is not personalized tax, legal, or financial advice. Consult a qualified tax strategist and estate attorney about your specific situation.

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