The Investors Winning This Cycle Treat Tax Strategy and Values as One
Most investors manage two conversations in parallel. One is with their financial advisor or CPA: how do I grow this capital, and how do I minimize what I owe? The other is a quieter, less quantified conversation about what they actually believe in and whether those beliefs show up anywhere in their portfolio.
Most investors manage two conversations in parallel. One is with their financial advisor or CPA: how do I grow this capital, and how do I minimize what I owe? The other is a quieter, less quantified conversation about what they actually believe in and whether those beliefs show up anywhere in their portfolio.
Steven Libman, founder of Investing With Purpose™, has spent the past 15 years making the case that treating these as separate conversations is both financially and philosophically inefficient. His firm operates multifamily real estate assets under a faith-driven investment framework, and Libman argues that the investors who will win the next market cycle are those who finally merge the two discussions.
“Tax strategy and values strategy should be part of the same conversation,” says Libman. “Not separate ones.”
Bonus Depreciation Is Back: What the Big Beautiful Bill Actually Means
The policy backdrop here is significant. The legislative package passed in 2024 reinstated 100 percent bonus depreciation for qualifying real estate investments, reversing a phasedown that had been reducing the benefit since 2018. For investors in multifamily and other eligible real estate structures, this is a material change to the tax calculus.
What it means in practice: investors can commission a cost segregation study on a property, which accelerates a portion of the building’s value into year-one depreciation rather than spreading it across the standard 27.5 or 39-year schedule. The result is a paper loss in year one that can substantially offset taxable income.
In structures where cost segregation is applied, it is not uncommon for the paper loss generated in year one to represent a significant portion of the original investment amount — while the investor continues to receive distributions and participate in any appreciation of the underlying asset. The depreciation benefit and the economic return run on separate tracks.
“They were still generating a return, making quarterly payments,” says Libman, “and that meant they did not have to pay any income tax on the payments they were receiving.”
Your CPA and Your Tax Strategist Are Not the Same Person
One of the more consequential points Libman raises is the distinction between a CPA and a tax strategist. It is a difference that many investors either do not know about or have not acted on.
A CPA’s core function is compliance: understanding the tax code, filing accurate returns, and ensuring that deductions taken are legal and defensible. What most CPAs do not do proactively is identify structures that could be used to reduce future taxable income. That is a tax strategy function, and it requires a different skill set and a different kind of relationship.
“It took me almost 15 years of business to understand this,” says Libman. “Your CPA and your tax strategist should be different people.”
The practical example he uses is Section 179 of the tax code, which allows businesses to expense certain capital purchases — including qualifying vehicles — in the year of purchase rather than depreciating them over time. A business owner who purchases a qualifying vehicle and expenses it under Section 179 can write the entire cost off against income in year one, even if the vehicle is financed — meaningfully reducing taxable income in ways most people never pursue because they did not know to ask.
How Depreciation and Values Investing Intersect
The connection between bonus depreciation and values-aligned investing is direct but underexplored. For investors whose portfolios are currently generating passive income or long-term capital gains, a well-structured real estate investment with cost segregation attached can create paper losses that legally offset those gains. That means more after-tax capital — capital that can be deployed toward causes, communities, or additional investments that reflect the investor’s priorities.
“The Bible says give to Caesar what Caesar is due,” says Libman. “That is it. It does not say give him more than what he is owed. And the only way I can really do that is by understanding the tax code and making sure I am giving him just what I am legally obligated to pay him, not more.”
The point is not ideological. The tax code operates the same way for every investor. What differs is how well each investor understands the tools available within it. Libman frames education as the precondition for both financial optimization and values alignment: you cannot intentionally deploy capital toward outcomes you believe in if you do not understand the mechanics of how capital can be structured.
Where the Two Conversations Finally Meet
The integrated strategy Libman describes looks like this: an accredited investor identifies a real estate opportunity in a values-aligned firm with strong operational fundamentals. They invest with a structure that includes a cost segregation study and bonus depreciation. In year one, the resulting paper losses reduce their taxable income. The after-tax savings either stay invested, fund philanthropic commitments, or both. The investment itself is generating community impact through an on-site ministry program. The quarterly distributions continue.
None of this requires special access. Accredited investors — defined by the SEC as those with a net worth above one million dollars excluding primary residence, or earned income over $200,000 filing single or $300,000 filing jointly — can evaluate these structures through direct conversations with the operators and their own professional advisors.
The caveat Libman is careful to include: this is not a conversation to have without your CPA present. Every investor’s tax situation is different, and the applicability of depreciation benefits depends heavily on passive income levels, professional status, and how the investor files. The general mechanics are consistent. The specific benefit is individual.
The Bigger Shift
Underlying Libman’s argument is a broader observation about how investors have been trained to think. The financial services industry, he argues, has consistently separated the concept of return from the concept of purpose, and then sold that separation as prudent. The result is a generation of investors who give generously from after-tax returns while their portfolios fund things they have never thought to examine.
The alternative he is describing is not a sacrifice. It is an integration. You can pursue strong returns, reduce your tax burden legally and compliantly, and invest in assets that reflect your values — and you do not have to choose between them. The infrastructure to do all three simultaneously exists. The question is whether investors know it does.
About Steven Libman: Steven Libman is the founder of Investing With Purpose, a faith-driven multifamily real estate firm. He has 15-year operating experience within the industry.
Disclaimer: This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
Company Details
Organization: Investing With Purpose
Contact Person: Heather Hook
Website: https://www.investingwithpurpose.org/
Email: Send Email
Country: United States
Release Id: 14052644959