Can I use my real estate purchase as a 2022 tax deduction if I have a C-Corp extension and buy property before filing?

Thanks for that explanation. But what if the property was already under contract in December 2022, but the closing wasn't until 2023? Would that make any difference for tax purposes? Also, are there any exceptions for certain types of real estate or business structures?

The timing is based on when you close on the property and take possession, not when you entered into a contract. If you signed a contract in 2022 but didn't close until 2023, it's still a 2023 transaction for tax purposes. There are no exceptions based on real estate type or business structure that would allow you to claim a 2023 purchase on 2022 taxes. The tax code is very specific about this timing issue - transactions must occur within the tax year to be claimed on that year's return, regardless of entity type (C-Corp, S-Corp, LLC, etc.) or property classification.

How exactly does this website work? I've got a bunch of conflicting documents about corporate asset purchases and depreciation. Would it help make sense of all that too?

Sounds interesting but I'm skeptical about AI tax tools. How accurate is it really with complex corporate tax situations? My CPA charges me a fortune but says these corporate property questions are "too nuanced" for software.

The website works by analyzing your tax documents and corporate paperwork to identify applicable tax rules and potential deductions. You upload your files securely, and it processes them using advanced algorithms specifically trained on tax regulations. It would definitely help with understanding depreciation options for your corporate assets. AI tax tools have come a long way, especially for specialized areas like corporate taxation. While no system replaces human judgment entirely, taxr.ai is designed specifically for complex scenarios like corporate property transactions and depreciation. It references the latest tax code updates and court rulings that even some CPAs might miss. I found it caught several nuances my previous accountant overlooked.

Wait, how is this even possible? I've literally spent HOURS on hold with the IRS and never got through. What's the catch here?

This sounds like complete BS. Nobody can get through to the IRS these days, especially for corporate tax questions. They're probably just connecting you to some random call center person pretending to be the IRS.

There's no special trick - they use technology that waits on hold for you, then calls you back when an actual IRS agent is on the line. You don't have to sit there listening to hold music for hours. The system monitors the call the entire time and alerts you when a human agent answers. I was extremely skeptical too, but it's legitimate. They're not connecting you to random people - you're actually speaking directly with IRS employees. The service just handles the waiting part. When they call you back, you're already connected to the real IRS queue that finally answered. I verified this by asking the agent specific questions about my tax account that only the IRS would know.

That's really interesting! I hadn't considered cost segregation. Do you know roughly what percentage of the property value you were able to accelerate the depreciation on? And did you use a specialized firm for the study or was it something your regular accountant handled?

We were able to accelerate depreciation on about 25-30% of our property value, which made a substantial difference in our first-year deductions. The components included things like specialized electrical systems, certain fixtures, landscaping elements, and some interior components that could be depreciated over 5-15 years instead of the standard 39 years for commercial property. We used a specialized engineering firm that works alongside our accountant for the study. While it cost around $4,500 for our $750k property, the tax savings in the first few years more than covered this expense. Your regular accountant likely won't have the engineering expertise to properly classify all building components, so I'd recommend finding a firm that specializes specifically in cost segregation studies.

This is actually really good advice depending on your overall situation. My tax attorney suggested this exact approach, and it's worked out much better for me tax-wise. The corporation gets the full deduction for rent payments, and I can take advantage of depreciation plus potential appreciation personally. Just make sure to set a fair market rent to avoid IRS scrutiny.