Navigating the world of real estate investing? The complexities of income taxation can be daunting. Improper annual income tax filing or lack of tax strategizing could come to haunt you years later or when you exit the investment. Finding a specialized real estate CPA, someone who truly understands the industry, is a crucial step in managing your financial affairs. This guide unravels the key qualifications and areas of expertise to look for in CPA in El Paso because whether you know it or not you are likely impacted by many of these income tax items.
Choose a Real Estate CPA with:
1. Expertise in Real Estate Professional Status (REPS):
- Understand passive activity rules to navigate income.
- Know how to qualify as a REP.
- Leverage material participation rules to reduce non-real estate source income.
2. Skilled in Optimizing Your Specific Tax Position:
- Master suspended passive losses.
- Understand Safe Harbors and Partial asset dispositions.
- Apply tax elections for repairs vs. improvements.
- Know proper categorization of expenses for strategic planning.
3. Expertise in Tax Depreciation Optimization on Properties:
- Utilize bonus depreciation.
- Employ Cost Segregation studies.
- Implement Change In Accounting Method.
- Catch up on prior placed-in-service property depreciation.
4. Understanding of Multiple Tax Structures of Real Estate Investing:
- Learn about legal entity structuring.
- Consider investing as a General Partner or Limited Partner.
- Explore investing through retirement accounts.
- Understand the tax aggregation strategy of multiple real estate activities.
5. Expertise in Short-Term Rental Activities Tax Treatment:
- Strategize short-term rental income.
- Benefit from material participation.
- Maximize tax benefits.
6. Skilled Strategic Planning for Property Exits:
- Forecast taxable gains.
- Advise tax deferment on gains like 1031, QOF (OZ), and others.
- Exit a real estate property investment tax-efficiently.
7. Expertise in Multi-State Tax and Depreciation Management:
- Ensure conformity with State tax depreciation.
- Navigate State gain or loss treatment.
- Manage entity or LLC State taxes paid.
- Plan State taxes for real estate activities.
- LLC or Entity level State taxes planning.
For additional resources, read our ultimate guide to real estate taxes, aim to help you maximize profits and minimizing cash taxes in the world of real estate.
Consider working with us:
Investing in real estate offers significant tax benefits, but without a specialized CPA, you might miss out on strategies that could reduce your tax bills. At JG CPA & Advisory, P.A., we have unique expertise on the real estate industry, our specialization uncovers opportunities that often elude other CPA practitioners. Whether you are a novice investor just starting out, own a moderate number of properties, or control a vast and sprawling portfolio, our tailored strategies aim to serve you. We are NOW ACCEPTING new clients for the 2023 tax year, offering solutions in tax strategizing & planning, accounting, financial services, and tax preparation. Our goal is not merely to minimize your effective tax rate for this year, but to craft intelligent strategies for the years ahead. Partner with us and leverage our robust experience to maximize your after-tax income.
To work with us:
Step 1: Fill out the webform below – the more information you provide the better.
Step 2: After submission of the webform, you’ll receive an email from us with next steps.
Step 3: Based on the information provided, we’ll then hold an initial consultation.
Complete the Webform Here.