A Tangible Property Regulations (TPR) Study is one of the most effective strategies for property owners to ensure compliance and unlock hidden tax savings. At Singh and Associates, LLP, we help real estate owners and investors apply the complex IRS Tangible Property Regulations in a way that maximizes deductions, enhances cash flow, and reduces audit exposure.
What Is a TPR Study?
A TPR study provides a detailed analysis of your property-related capital expenditures to determine whether they should be capitalized and depreciated over time or expensed immediately as repairs and maintenance. Proper classification ensures compliance with IRS rules while allowing you to take full advantage of immediate write-offs where applicable, which results in meaningful first-year tax benefits and improved cash flow.
Our studies also identify opportunities for Partial Asset Dispositions (PADs), which allow you to write off the remaining value of assets that have been replaced or removed, such as outdated roofing, window systems, or mechanical equipment. This often creates additional deductions that are easy to overlook without a professional analysis.
Properties That Benefit from a TPR Study
Virtually any commercial or investment property can benefit from a TPR study. Property owners who frequently renovate, upgrade, or maintain their real estate will see the most significant results. Ideal candidates include:
- Multifamily properties: Owners who upgrade rental units between tenants or complete ongoing capital improvements.
- Hotels, restaurants, and franchises: Businesses that undergo periodic “refresh” or “re-imaging” programs.
- Office, industrial, and retail properties: Owners who replace or update building systems and infrastructure over time.
When to Conduct a TPR Study
A TPR study is most valuable after major renovations or improvements to a property in order to ensure expenditures are accurately classified for tax purposes. Owners can also choose to perform periodic reviews (annually, every few years, or even quarterly) depending on the level of ongoing capital investment.
Additional Benefits
A TPR study offers more than just compliance. It’s a proactive tax planning tool. Key advantages include:
- State tax benefits: Since not all states follow federal bonus depreciation rules, a TPR study can reveal opportunities to deduct costs immediately for state tax purposes.
- Reduced recapture tax: Assets written off through a PAD are generally not subject to depreciation recapture when the property is sold.
- Ongoing optimization: Regular updates ensure your asset classifications and deductions remain accurate under changing tax laws.
Why Partner with Singh and Associates, LLP?
At Singh and Associates, LLP, our team combines deep technical expertise with practical real estate experience. We don’t just interpret the Tangible Property Regulations, we apply them strategically to help clients:
- Reduce current-year taxable income
- Increase cash flow and ROI
- Maintain full IRS compliance with defensible documentation
Whether you recently completed a renovation, purchased a property, or are planning future improvements, our team can help you identify immediate and long-term tax savings opportunities.
