Depreciation, passive loss rules and a sale that can trigger a big tax bill. We plan every property from purchase to exit and insure it along the way.
Landlords, small portfolio owners and foreign investors in U.S. property work with our office for Schedule E and partnership returns, depreciation, 1031 planning and rental property insurance.
Reviewed by Orkun Ozkaymak, CPA, MBA·Clients in all 50 states and abroad
Rental real estate has its own tax rules: depreciation from the day a unit is placed in service, limits on passive losses, and gains and depreciation recapture when you sell.
Our office tracks each property separately, plans purchases and sales before closing and works with owners who live abroad, while our agency writes the rental property coverage.
Where investors gain the most from planning ahead.
Residential buildings depreciate over 27.5 years, and repairs versus improvements change what you deduct now.
How we helpWe set up a fixed asset schedule for each property and classify every repair and improvement correctly.
Rental losses are usually passive and can be limited based on your income and involvement.
How we helpWe track suspended losses year to year and plan how they are used, including on a sale.
A sale can bring capital gains plus tax on depreciation taken in prior years.
How we helpWe plan sales before you list, including 1031 exchange timing when you want to reinvest.
Foreign owners face 30% tax on gross rent unless they elect net basis taxation, and FIRPTA withholding on a sale.
How we helpWe file the election and Form 1040-NR or corporate returns, and plan ownership structures before you buy.
Tax, accounting and insurance under one roof, so the numbers on your return, your books and your policies all agree.
The recurring deadlines real estate investors face most often. We track them for you and send reminders before anything is due.
Dates shown are for calendar-year filers. When a due date falls on a weekend or holiday, it moves to the next business day.
Your QuickBooks tracks income and expenses by property, so you can see cash flow and return on each one.
Our office sets up QuickBooks Online with a chart of accounts designed for your industry and your entity type, mapped line by line to your tax return. Your books are ready for filing season all year.
Sometimes. If you actively participate, up to $25,000 of losses may be allowed, phasing out as income rises from $100,000 to $150,000. Otherwise losses carry forward.
You sell investment property and buy like-kind property through a qualified intermediary, identifying replacements within 45 days and closing within 180 days, to defer the gain.
Without an election, gross rent is taxed at 30%. With the net basis election, expenses and depreciation are deducted and graduated rates apply. We file the election and your return.
Request an insurance quote, or start your company with our office. Prefer to talk first? Book a time, virtual or in person.