Cascade Commercial Investment Advisors

Cascade Commercial Investment Advisors Midwest Commercial Real Estate Services: A Multifamily Real Estate Brokerage For Real Estate Investors

Stephen Sykes began investing in real estate in 2005 and in Omaha in 2015. He has acquired positions in multiple properties in Omaha, South Dakota and Kansas City and holds real estate Broker's licenses in Nebraska, South Dakota, and Iowa. He focuses on value-add properties for himself and his clients. Stephen manages approximately 100 units under his property management company, Cascade Real Estate Group. He holds a Master’s in Public Administration and has worked on municipal planning and public works projects for 16 years in Oregon and Nebraska. Stephen applies this experience currently by acquiring and repositioning properties in Omaha’s redeveloping urban core and other Midwestern cities. Service area includes greater Midwest, (SD, IA, NE, MO, KS)

POST 10 of 14 | Your Three Options -- OverviewWhat are the options for Nebraska apartment owners who want to reduce th...
09/15/2026

POST 10 of 14 | Your Three Options -- Overview
What are the options for Nebraska apartment owners who want to reduce the tax bill when they sell?
Three paths. None is right for everyone.
Option 1 -- Sell and pay the taxes.
The straightforward exit. Works when you have offsetting losses, a low-income year, or simply want full liquidity. The key is knowing the number in advance.
Option 2 -- 1031 Exchange.
Sell and reinvest into like-kind property. Defers the entire tax bill indefinitely. Strict rules: 45 days to identify a replacement, 180 days to close.
Option 3 -- 1031 into a Delaware Statutory Trust (DST).
Defer the taxes without buying another active property. Passive income, no management. Available to accredited investors only.
Over the next three weeks I am walking through each one in detail.
Next week: the 1031 exchange -- what it actually takes to pull off in Nebraska's current market.
https://wix.to/Wtoy4Zv

POST 9 of 14 | Napkin Math vs. RealityWhat is the difference between what Nebraska apartment owners expect to net -- a...
09/15/2026

POST 9 of 14 | Napkin Math vs. Reality
What is the difference between what Nebraska apartment owners expect to net -- and what they actually receive?
Here is the same $900,000 sale, two ways:
Calculation Point Back of the Napkin Actual Outcome
Selling Costs ($36,000) est. 4% ($63,000) actual 7%
Taxable Gain $539,000 (sale minus paid) $731,545 (adjusted basis)
Tax Rate Applied ~20% flat 4 rates stacked
Total Tax Bill ~$115,000 ~$231,557
Net to Owner ~$749,000 ~$605,443
Difference -- ~$143,557 LESS than expected
The $143,557 gap breaks down as:
• $116,557 more in taxes than anticipated
• $27,000 more in selling costs than estimated
Both are predictable. Both are addressable -- if you plan before you list.
Next week: the three options Nebraska apartment owners have for handling this.
https://wix.to/TO7hADG

POST 8 of 14 | Documentation for Capital ImprovementsWhat documentation do Nebraska apartment owners need to claim cap...
09/08/2026

POST 8 of 14 | Documentation for Capital Improvements
What documentation do Nebraska apartment owners need to claim capital improvements when they sell?
Capital improvements reduce your taxable gain -- but only if you can prove you made them.
What the IRS wants:
• Contractor invoices
• Permits pulled for the work
• Bank or credit card records showing payment
• Receipts for materials on significant jobs
What if you paid cash and kept no records?
Bank statements showing large payments to contractors can still support a claim. Permits are public records and often retrievable from the county. A CPA experienced in real estate sales can help you reconstruct what is recoverable.
Before you list: pull every invoice, permit, and bank statement you can find. Even partial records help.
Next week: the napkin math vs. the real number -- side by side.
https://wix.to/e96Yfqt

POST 7 of 14 | Capital Improvements -- The Basis BoosterHow do capital improvements reduce your tax bill when selling ...
09/01/2026

POST 7 of 14 | Capital Improvements -- The Basis Booster
How do capital improvements reduce your tax bill when selling a Nebraska apartment building?
Capital improvements increase your adjusted basis -- dollar for dollar -- which reduces your taxable gain by the same amount.
What counts as a capital improvement:
• Roof replacement
• HVAC systems
• Major unit renovations
• Electrical or plumbing overhauls
• Parking lot repaving
What does NOT count: repairs, painting, appliance replacements. These are expensed -- they do not add to basis.
For a Nebraska building held 20-plus years, documented improvements can reduce the taxable gain by $50,000-$100,000 or more.
The catch: they only count if you can prove them.
Next week: what documentation the IRS actually requires -- and what to do if your records are incomplete.
https://wix.to/JQA2ZQm

POST 6 of 14 | Nebraska State Tax -- Tax #4Does Nebraska offer a lower tax rate on capital gains from selling investm...
08/25/2026

POST 6 of 14 | Nebraska State Tax -- Tax #4
Does Nebraska offer a lower tax rate on capital gains from selling investment property? No.
And that surprises a lot of sellers who have read national content on this topic.
Nebraska taxes capital gains as ordinary income -- the same rates as your regular paycheck. The top rate in 2026 is 5.84%.
There is no preferential rate for long-term gains the way federal law provides.
On a $731,000 taxable gain, Nebraska adds roughly $42,700 to the total bill.
The rate is scheduled to decline toward 3.99% over the next few years. It has not reached that level yet.
One piece of good news: Nebraska has no statewide rent control, which has supported strong values for apartment owners across the state.
Next week: the factor that actually works in your favor -- and that most sellers fail to fully document.
https://wix.to/rV7Hvga

POST 5 of 14 | Capital Gains + NIIT -- Taxes #2 and #3Does the 3.8% net investment income tax apply to Nebraska apar...
08/18/2026

POST 5 of 14 | Capital Gains + NIIT -- Taxes #2 and #3
Does the 3.8% net investment income tax apply to Nebraska apartment owners who sell?
Most sellers know about federal capital gains. Fewer know about the surtax that rides on top of it.
Capital gains tax applies to your gain at 15-20% depending on income.
The Net Investment Income Tax (NIIT) adds another 3.8% if your modified adjusted gross income exceeds:
• $200,000 if filing single
• $250,000 if married filing jointly
Most established Nebraska apartment owners will hit those thresholds in the year they sell -- particularly because the sale itself generates significant income.
On a $731,000 gain, the NIIT adds roughly $27,800 to the bill. It is consistently missing from back-of-envelope estimates.
Next week: what Nebraska adds on top of all of this -- and why it is not in most national content on this topic.
https://wix.to/ZnCzdN6

POST 4 of 14 | Depreciation Recapture -- Tax #1What is depreciation recapture -- and why do Nebraska apartment owners...
08/11/2026

POST 4 of 14 | Depreciation Recapture -- Tax #1
What is depreciation recapture -- and why do Nebraska apartment owners owe it even if they never claimed depreciation?
Every year you own a rental property, the IRS allows you to deduct depreciation.
When you sell, they tax it back. At 25%. On every dollar -- whether you claimed it or not.
That last part is what catches people.
The IRS taxes what you COULD have deducted, not just what you did. If your accountant never set up a proper depreciation schedule, you still owe the recapture -- but you never got the annual deductions.
On a Nebraska 12-unit held 25 years, that recapture bill alone runs $60,000-$75,000.
There is a fix -- Form 3115 -- but it has to be filed before the sale closes.
Next week: the federal surtax most sellers have never heard of.https://wix.to/RuRdbC4

POST 3 of 14 | The Four Taxes -- OverviewHow many separate taxes do Nebraska apartment owners pay when they sell?Four....
08/04/2026

POST 3 of 14 | The Four Taxes -- Overview
How many separate taxes do Nebraska apartment owners pay when they sell?
Four. They hit simultaneously and they stack.
• Federal Capital Gains -- 15-20% on your gain
• Net Investment Income Tax -- +3.8% if income exceeds $200K single / $250K married
• Depreciation Recapture -- 25% on all depreciation taken over ownership
• Nebraska State Tax -- up to 5.84% on the full gain, taxed as ordinary income
On a $900,000 sale with a 25-year hold, those four layers combined produce a tax bill around $231,000.
Most sellers plan for one. Most CPAs explain two. Almost nobody explains all four before you list.
https://wix.to/psp44cL

POST 2 of 14 | How Your Taxable Gain Is Actually CalculatedHow does the IRS calculate your taxable gain when you sell ...
07/28/2026

POST 2 of 14 | How Your Taxable Gain Is Actually Calculated
How does the IRS calculate your taxable gain when you sell a Nebraska apartment building?
Not: Sale Price minus what you paid.
The IRS uses your Adjusted Basis:
• Start with your original purchase price
• ADD capital improvements made during ownership
• SUBTRACT all depreciation taken -- or allowable -- over the years
That final subtraction is the one that changes everything.
For a building held 20-plus years, depreciation has typically reduced your basis by $200,000 to $300,000. Which means your taxable gain is much larger than sale price minus purchase price suggests.
The capital improvements help -- they push the basis back up, dollar for dollar.
But only if you can document them.
Next week: the four taxes that hit that gain -- and how they stack.
https://wix.to/g6xNhKh

What will you actually net when you sell your Nebraska apartment building?Content Series For owners of 5-100 unit proper...
07/20/2026

What will you actually net when you sell your Nebraska apartment building?
Content Series For owners of 5-100 unit properties in Nebraska.
1 of 14 | The Gap Nobody Warns You About
Most owners do the same quick math:
Bought for $325,000. Selling for $900,000. Profit: $575,000.
Here is what that math misses:
• Selling costs that are higher than most owners estimate
• A taxable gain that is larger than the sale price minus purchase price
• Three additional taxes beyond the standard capital gains rate
• A Nebraska-specific bill that most national content ignores
By the time all four hit, a typical Nebraska apartment owner nets $140,000-$150,000 less than their napkin math suggested.
Over the next 13 weeks I am walking through exactly how this works
https://wix.to/HGXmSPI

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117 S. 25 Street
Omaha, NE
68131

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