clearbooks-logo-png

Real Estate Tips

Real Estate Tips

are in a unique situation to position themselves to build tax-efficient wealth. However, steps should be taken to safeguard assets and minimize tax liability. Here are a few tips:

Liability Protection: Form an LLC to cleanly manage business inflows and outflows while protecting assets. (Sole Proprietorship vs LLC vs S-Corp)

Depreciation: Expense home appliances and infrastructure improvements on an individual basis over their service life instead of the aggregated 27.5 yr resident or 39 yr commercial depreciation

Expenses: Cash out business mileage on a monthly basis by running it through your entity (sample mileage log)

Property Exchanges: Use §1031, like-kind exchanges, on property to minimize recognized gain by deferring realized gains

Retirement: Utilize IRAs and 401ks to defer paying taxes (SEP IRA, Simple IRA, S-401k)

Active Losses: Qualify as a real estate professional to take active losses instead of passive losses:

Spending 750+ hours in real property business

Greater than ½ time spent

IRS Exception (<150k AGI)

Some Feedback

Hear From Our Customers

Clearbooks CPA was very communicative and organized and helped save me the most money possible. Was informed about the best way to deal with Bitcoin and crypto taxation. 10/10 would recommend.

Sai Vuppala

@Sai Vuppala, 3 months ago

I started an export/import and distribution business last year and my finances were a complete mess with my previous CPA. After my initial meeting with Sugam Sharma I knew he was the right fit for my company and I...

Shayer Aziz

@Shayer Aziz ,18 hours ago

Sugam provided exceptional service to me and my eCommerce business. He was able to help me with my sales tax filings in multiple states while also providing metrics to help me scale my business. As a CPA he has saved me a...

Rian Kapadia

@Rian Kapadia, a month ago