Navigating Section 179D Deductions with Subject Matter Expert Jim Peacock
Is Section 179D dead? Not even close.In this episode of the Real Estate Explainer podcast, host Brian Kiczula (Cost Seg RX) sits down with Jim Peacock, a retired IRS field engineer and subject matter expert with decades of experience auditing complex depreciation and cost segregation issues. Together, they demystify Section 179D (the Energy Efficient Commercial Buildings Deduction) and break down exactly how property owners, architects, and engineers can unlock massive tax savings before impending deadlines. Jim shares his invaluable "insider perspective" from his time at the IRS, revealing how the Inflation Reduction Act (IRA) supercharged this incentive, what red flags trigger an audit, and how to bulletproof your documentation. What Youâll Learn in This Episode:Deduction vs. Credit: Understanding how Section 179D works and why itâs a powerful tool for pulling forward deductions on structural 1250 property (like HVAC, lighting, and building envelopes). The 2026 Sunset & Deadlines: Why June 30, 2026, is a critical date for construction starts, and how you can still claim deductions for years to come. The "Look-Back" Advantage: How building owners can use look-back studies or Form 3115 to capture missed deductions dating all the way back to 2006. The Golden Opportunity for Designers: How architects and engineers can claim allocations from tax-exempt entities and government buildings. IRS Audit Secrets: The most common mistakes found in 179D studies, the importance of ASHRAE Standard 90.1, and how to avoid dreaded Information Document Requests (IDRs). Retrofit Retroactivity: How the new 179D(f) rules allow you to prove energy efficiency via actual utility measurements before and after a renovation. Guest Bio: Jim Peacock spent several decades as an IRS field engineer and subject matter expert specializing in cost segregation and Section 179D. Today, he runs his own consulting firm, reviewing studies to ensure they are audit-ready from an IRS perspective. Connect with Jim:Email: james.peacock@jpeacockcsa.com LinkedIn: Jim Peacock Want to connect with today's guest or learn more? Head over to realestateexplainer.com and click the "Get Connected" button on the homepage!
