When you invest in real estate properties in Atlanta, partnering with a CPA specialized in real estate is non-negotiable. You should not pay more cash tax than you should. They should be in tune with industry-specific tax strategies, fully comprehend changes in tax laws, and understand how to apply this knowledge to improve your after-tax earnings and minimize your cash taxes in both the current and past tax years.
Here are key qualifications and expertise that you should look for when hiring a Real Estate CPA:
In Optimizing Your Specific Tax Position:
- Masters your suspended passive losses.
- Understands if you qualify Safe Harbors and Partial asset dispositions.
- Apply tax elections and analysis for repairs vs. improvements.
- Knows proper categorization of expenses for strategic planning.
- Understands passive activity rules.
- Knows the qualifications to designate you as a REP.
- Leverages material participation rules to reduce your non-real estate source income.
In Multiple Tax Structures of Real Estate Investing:
- Advices and understand your specific activities to assist you in legal entity structuring.
- Familiar with tax rules of General Partners or Limited Partners.
- Explores investing through retirement accounts for you.
- Understands tax aggregation strategy of multiple real estate activities.
Expertise in Tax Depreciation Optimization on Properties:
- Utilizes bonus depreciation for property that qualifies.
- Engages in Cost Segregation studies planning with you.
- Executes Changes in Accounting Procedures to maximize your taxable position.
- Updates on previously placed-in-service asset depreciation.
In State Tax and Depreciation Management:
- Ensures conformity with State tax depreciation.
- Navigates State gain or loss treatment.
- Manages entity or LLC State taxes paid.
- Plans State taxes for real estate activities.
- LLC or Entity level State taxes planning.
In Short-Term Rental Activities Tax Treatment:
- Strategizes short-term rental income tax strategies.
- Qualifies you and is familiar with material participation rules to maximize your tax benefit.
- Maximize tax deductibility benefits from STR real estate investments.
Performs Strategic Planning for Property Exits:
- Forecasts taxable gains.
- Advise tax deferment on gains like 1031, QOF (OZ), and others.
- Exit a real estate property investment tax-efficiently.
Make sure to check out our enclosed complimentary guide for insights on the latest real estate tax strategies.
If your current tax accountant or CPA hasn’t discussed these essential tax strategies with you, chances are he or she lacks real estate tax expertise. Consequently, you could be missing out on powerful tax-saving strategies uniquely available through real estate investments. Don’t overpay in taxes!
If you are considering a new CPA and would like to take advantage of the real estate tax applications mentioned above, consider working with an experienced real estate specialized CPA.
My firm, JG CPA & Advisory, where we specialize in real estate taxes is currently accepting new clients for tax year 2023. If you would be interested in consultation or our services, complete the webform here. We will contact you shortly after submission.
Craft real estate tax strategies for the years ahead!