Industry Expertise
CPA Services for Real Estate Investors and Landlords
Specialized tax preparation, planning, and bookkeeping for individual investors, landlords, real estate professionals, and short-term rental operators.
Who This Is For
Individual rental property owners, multi-unit landlords, fix-and-flip investors, short-term rental operators (Airbnb, VRBO), real estate professionals seeking unrestricted loss deductions, and partners in real estate LLCs and partnerships.
Top Tax Issues for Real Estate Investors
Passive activity losses limited by IRC Section 469
Rental losses are passive by default and capped at $25,000 per year (phased out at $100K-$150K AGI). Real Estate Professional Status under Section 469(c)(7) lifts this cap entirely, but it requires meeting strict 750-hour and material participation tests.
Depreciation tracking and recapture
Residential rentals depreciate over 27.5 years; commercial over 39 years. Cost segregation studies can accelerate deductions, but Section 1250 depreciation recapture (taxed up to 25%) and Section 1245 recapture (taxed at ordinary rates) hit on sale.
1031 exchange compliance
Section 1031 like-kind exchanges defer capital gains but require strict 45-day identification and 180-day acquisition deadlines, qualified intermediary involvement, and identical taxpayer titling. Boot received is currently taxable.
Short-term rental classification
Average rental periods of 7 days or less can convert a rental into an active trade or business (often Schedule C), changing self-employment tax exposure and material participation rules.
Strategies TS CPA Uses
Cost segregation studies
Reclassify portions of a building (5-year, 7-year, 15-year property) to accelerate depreciation. Combined with bonus depreciation under Section 168(k) (100% restored under OBBBA for assets placed in service after January 19, 2025), this can produce six-figure first-year deductions.
Real Estate Professional Status (REPS) qualification
Married couples can have one spouse qualify as a Real Estate Professional, allowing unlimited rental loss deduction against W-2 income. Documentation of 750+ hours, more time in real estate than any other activity, and material participation per property is essential.
Section 121 exclusion planning
Up to $250K (single) / $500K (joint) of capital gain from sale of a primary residence is excluded if the 2-of-5-year ownership and use test is met. Strategic timing around residence conversions and rental periods preserves eligibility.
Entity structuring for asset protection and tax efficiency
Holding rentals in LLCs (or LLC series) provides liability separation. Pass-through entity tax (PTET) elections, when available at the state level, can convert non-deductible state taxes into federally-deductible business expenses.
Services for Real Estate Investors
Individual Tax Preparation
Tailored and accurate tax preparation, because your financial situation deserves more than a template.
Tax Planning & Strategy
Year-round, proactive tax planning that puts more money back in your pocket, not the IRS's.
Business Tax Preparation
Expert and tailored business tax services, because your business deserves more than a generic filing.
Bookkeeping Services
Reliable, CPA-managed bookkeeping that keeps your financials clean, accurate, and tax-ready year-round.
Tax Forms Real Estate Investors Should Know
Key Tax Terms for Real Estate Investors
Like-Kind Exchange (Section 1031)
A tax-deferred exchange of investment or business real property for similar property under IRC Section 1031, deferring capital gains recognition.
Depreciation
The deduction of the cost of a tangible business asset over its useful life, reflecting wear, tear, or obsolescence.
Capital Gain
The profit realized from the sale of a capital asset such as stock, real estate, or cryptocurrency, taxed at preferential rates if held longer than one year.
Schedule E (Supplemental Income and Loss)
The federal tax form for reporting rental real estate income, royalties, and pass-through income from partnerships, S corporations, estates, and trusts.
Pass-Through Entity
A business entity that does not pay federal income tax at the entity level; instead, profits and losses pass through to owners who report them on their individual returns.
Related Articles
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A cost segregation study moves rental building costs onto 5, 7 and 15 year lives that can qualify for 100 percent bonus depreciation.
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Asset Sale vs. Stock Sale: Business Tax Guide
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Rental Property Sale: Depreciation Recapture Tax
Selling rental property creates three tax layers: depreciation recapture at 25%, Section 1231 gains, and NIIT. What to expect in 2026.
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The year you move back to the US pulls in a prorated FEIE, foreign accounts left behind, and a home sale on one return. Here's what changes.
Step-Up in Basis for Inherited Property 2026
How the Section 1014 step-up in basis works for inherited homes, stocks, and rentals, what does not step up, and how to report the sale.
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