Real Estate

Accounting and Tax for Real Estate

Real estate is taxed under its own set of rules, and the way you record and structure your activity can make a real difference to your bottom line. We work with people who own property and people who earn their living selling it.

Investors and landlords

• Rental income and expenses. Tracking each property so you can see how it actually performs.
• Depreciation and improvements. Deciding what is repaired, what is improved and how each is treated for tax.
• Purchases, sales and exchanges. Planning ahead for the tax effects before you close.
• Entity choices. Considering how to hold properties, and how that affects liability and taxes. See new business formation.
• Financing. Preparing statements lenders want to see. Visit bank financing.

Agents and brokers

Many agents are independent contractors, which means self-employment tax, estimated payments and keeping track of business expenses such as marketing, mileage and licensing fees. We help you set up simple records, plan quarterly payments and avoid a surprise at filing time. Brokers with teams or a brokerage entity may also need payroll, agent payment tracking and clean financial statements.

Passive activity and other special rules

Rental losses, active participation and real estate professional status all raise questions that depend on your facts. We can explain how those rules may apply to you and help you document what is needed. See also tax planning and individual tax preparation.

Keeping the books straight

A tidy set of books makes everything else easier. If you use QuickBooks, we can help with setup so each property or listing is tracked the way you need.

Records worth keeping

Closing statements, receipts for improvements, mileage logs and lease paperwork all matter at tax time. We will tell you what to keep, and for how long, so you can support your numbers if questions come up.