Real Estate Has Its Own Tax Code
Cost segregation, 1031 exchanges, Real Estate Professional Status, passive activity rules, QBI deductions. Most CPAs know these exist. Few apply them correctly or aggressively enough to matter. The difference between a real estate-focused CPA and a generalist shows up directly on your return, and the gap is often tens of thousands of dollars per year. Real estate is one of the most tax-advantaged asset classes in the code. Most owners aren’t using it fully.Strategy That Matches Your Structure
We work with rental property owners, flippers, developers, and investors holding real estate through LLCs, partnerships, and S-corporations. Every structure has different implications for:
- Depreciation and cost recovery
- Self-employment tax exposure
- The Section 199A QBI deduction
- Passive activity loss rules and grouping elections
- Depreciation recapture on sale
We match the entity to the strategy. Not the other way around. The right structure protects your depreciation benefits, reduces your tax rate, and positions you cleanly for a future sale or exchange.
Real Estate Professional Status
If you qualify for Real Estate Professional Status, it unlocks the ability to deduct rental losses against ordinary income with no limitation. The IRS challenges REPS more than almost any other position on a return. We document it properly from the start so the position holds up. If you don’t qualify, we find every other available lever: cost segregation studies, grouping elections, short-term rental strategies, and passive loss planning. There’s almost always more to work with than what’s being used.What We Handle
- Cost Segregation Studies
- 1031 Like-Kind Exchanges
- Real Estate Professional Status (REPS)
- Passive Activity Loss Rules & Grouping Elections
- Section 199A / QBI Deduction Optimization
- Rental Property Tax Strategy
- Short-Term Rental Tax Planning (Airbnb, VRBO)
- Partnership & Multi-Member LLC Returns
- Depreciation Recapture Planning
- Florida Sales Tax on Rentals