How much house do I need to offset my RSU or IPO taxes?

As a rough cheat sheet, size the property so its first-year cost segregation deduction (assumed around 40% of the purchase price with 100% bonus depreciation) equals your estimated federal tax. On 2025 married-filing-jointly brackets that is roughly: a $500K vest (~$114K tax) needs a ~$285K property; $1M (~$294K) needs ~$735K; $2M (~$664K) needs ~$1.66M; $3M (~$1.03M) needs ~$2.58M. These are illustrative; a single year's offset of ordinary income is limited under §461(l), so larger vests offset over two to three years. Your CPA confirms the numbers for your facts.

How does real estate offset equity compensation?

RSU vesting and IPO proceeds are taxed as ordinary income. A short-term rental you materially participate in produces non-passive losses under the seven-day rule, and a cost segregation study accelerates depreciation into a large first-year loss. That loss offsets ordinary income in the year you take it. It is one lever beside QSBS, exercise timing, and estimated-tax planning, not the whole plan.

What is the 40% first-year deduction assumption?

On a finish-heavy short-term rental, an engineered study commonly reclassifies a meaningful share of the purchase price into 5-, 7-, and 15-year property that takes 100% bonus depreciation. The one-pager sizes the house so a first-year deduction of about 40% of the price equals the estimated tax. The actual share depends on the property, which is why it takes a real study rather than a rule of thumb.

Cheat sheet · Est. RSU vest taxes & the home to offset

How much real estate offsets your equity comp?

Shift your IPO taxes into a real estate asset using cost segregation from Unlevered.

The asset

A short-term rental you depreciate the year you vest.

Mid-century modern short-term rental, the kind of property whose first-year cost segregation deduction offsets equity-comp taxes

2026 · 100% bonus

10–40%

of a property's purchase price can be reclassified to short-life assets and expensed in year one under 100% bonus depreciation.

IPO vestEst. federal taxEst. house cost to offset taxes

$500K~$114K~$285K

$1M~$294K~$735K

$2M~$664K~$1.66M

$3M~$1.03M~$2.58M

House cost where the ~40% first-year deduction covers the estimated tax, subject to the §461(l) limit; larger vests offset over 2–3 years.

01Vest or IPOA large equity payout hits as ordinary income.

02Buy and place in serviceAcquire a short-term rental and host guests in the same tax year.

03Cost segregateWe tag all facets of your home to engineer a large first-year deduction.

04Materially participate100+ hours makes the loss non-passive, so it offsets your RSU and IPO income.

Illustrative. Federal tax, married filing jointly, 2025 brackets. First-year deduction assumed ~40% of purchase price via cost segregation with 100% bonus depreciation. Single-year offset of ordinary income is limited (about $626K MFJ under section 461(l)); larger amounts offset over multiple years. Not tax advice; results depend on your facts.

How much real estate offsets your equity comp?

See what a study finds on your property.