{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What is a reverse 1031 exchange and when should I use one?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A reverse 1031 exchange allows you to acquire the replacement property BEFORE selling your relinquished property — the opposite of a standard exchange. This is useful in competitive markets like Mesa where you need to move quickly on a replacement property before your current property sells. The replacement property is held by an Exchange Accommodation Titleholder (EAT) until you sell the relinquished property, with a 180-day window to complete the sale. Reverse exchanges are more complex and expensive than standard exchanges but can be essential in fast-moving markets.”
}
}, {
“@type”: “Question”,
“name”: “What are the deadlines for a 1031 exchange?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A 1031 exchange has two critical deadlines: (1) the 45-day identification period — you must identify potential replacement properties within 45 days of closing your relinquished property; and (2) the 180-day exchange period — you must close on the replacement property within 180 days of selling. Both deadlines are absolute — missing either one disqualifies the exchange and triggers full tax liability. KDA’s Mesa team tracks these deadlines meticulously and coordinates with your qualified intermediary to ensure compliance.”
}
}, {
“@type”: “Question”,
“name”: “What are passive activity loss rules and how do they affect real estate investors?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Passive activity loss rules are why most real estate investors can’t simply deduct rental losses against their W-2 income. The rules create a ‘passive loss bucket’ — losses accumulate but can’t be used until you have passive income or sell the property. The exceptions are: (1) the $25,000 allowance for active participants with AGI under $100,000; (2) REPS qualification; and (3) the STR loophole. KDA’s Mesa real estate CPA team will analyze your passive loss position and identify the most efficient path to unlocking those deductions.”
}
}, {
“@type”: “Question”,
“name”: “What should Arizona real estate investors know about the One Big Beautiful Bill Act?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The One Big Beautiful Bill Act’s permanent restoration of 100% bonus depreciation is transformative for Mesa real estate investors. Combined with a cost segregation study, you can now write off 20–40% of a commercial property’s purchase price in year one — permanently, not just through 2025. For a Mesa investor buying a $1M commercial property, this means $200,000–$400,000 in first-year deductions. Arizona’s 2.5% flat tax means the state-level benefit is modest, but the federal savings at 37% are enormous. KDA’s team will model the OBBBA impact for your specific acquisition.”
}
}, {
“@type”: “Question”,
“name”: “What is bonus depreciation and how does it work for real estate in 2026?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “In 2026, bonus depreciation is back to 100% permanently thanks to the One Big Beautiful Bill Act. For real estate investors in Mesa, this means that any 5-, 7-, or 15-year property identified through a cost segregation study can be fully deducted in the year of acquisition. Previously, bonus depreciation had phased down to 60% in 2024 — the restoration to 100% is the single biggest tax change for real estate investors since 2017.”
}
}, {
“@type”: “Question”,
“name”: “What is a Delaware Statutory Trust (DST) and how does it work in a 1031 exchange?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A Delaware Statutory Trust (DST) is a passive real estate investment vehicle that qualifies as like-kind property for 1031 exchange purposes. DSTs allow investors to exchange out of an active rental property and into a fractional interest in a large institutional property (apartment complex, industrial facility, net-lease retail) without active management responsibilities. The key benefits: (1) no management headaches; (2) access to institutional-quality properties; (3) qualifies for 1031 exchange; (4) minimum investments typically $100,000–$250,000. The drawback: no control over the property and limited liquidity. KDA’s Mesa team will evaluate whether a DST is the right 1031 exchange replacement property for your situation.”
}
}, {
“@type”: “Question”,
“name”: “How does Arizona’s flat 2.5% income tax rate benefit real estate investors?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Arizona’s 2.5% flat income tax is a major competitive advantage for Mesa real estate investors compared to high-tax states like California (13.3%) or New York (10.9%). The lower state tax rate amplifies the value of every federal deduction — a $100,000 cost segregation deduction saves $37,000 in federal tax plus $2,500 in Arizona state tax. And when you eventually sell, capital gains are taxed at just 2.5% at the state level. KDA’s Mesa team will ensure you’re fully leveraging Arizona’s tax-friendly environment.”
}
}, {
“@type”: “Question”,
“name”: “Can a married couple use Real Estate Professional Status if only one spouse qualifies?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Yes — and this is one of the most powerful applications of REPS for high-income couples in Mesa. If one spouse qualifies as a real estate professional (750+ hours, majority of working time), the couple can use rental losses to offset the other spouse’s W-2 income on their joint return. A couple where one spouse earns $400,000 in W-2 income and the other qualifies for REPS with $200,000 in rental losses can save $74,000+ in federal taxes. KDA’s team will evaluate both spouses’ time allocations and structure the most advantageous approach.”
}
}, {
“@type”: “Question”,
“name”: “Can I do a cost segregation study on a property I’ve owned for years?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Yes — and this is one of the most underutilized strategies in real estate tax planning. You can perform a ‘look-back’ cost segregation study on properties you’ve owned for years and catch up all the accelerated depreciation you missed in a single year using a Form 3115 (Change in Accounting Method). This is completely IRS-approved and can generate enormous deductions without amending prior returns. KDA’s Mesa team has helped clients generate $100,000–$500,000 in catch-up deductions from properties owned for 5–10 years.”
}
}, {
“@type”: “Question”,
“name”: “How can I use a self-directed IRA to invest in real estate?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Self-directed IRAs are a powerful vehicle for Mesa real estate investors who want to grow their retirement accounts through property ownership. A Roth SDIRA is especially powerful — all rental income and appreciation grow completely tax-free. The rules are strict: no personal use of the property, no transactions with disqualified persons (family members), and all property expenses must be paid from the IRA. KDA’s team will structure your SDIRA real estate investment correctly and ensure ongoing compliance.”
}
}
]
}