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December 18, 2023 | read

Four Scenarios Where a Real Estate CPA Comes In Handy

Ben Isley

At Real Estate CPA, we excel in helping our customers with tax strategy and structuring and tax compliance. We understand that real estate is a specialized industry where tax burdens often determine the profit margin and long-term solvency of an investment strategy. We offer the professional help that investors need to move forward on a confident footing.

Real Estate Sales Taxes

Some real estate sellers get an unpleasant pleasant surprise when it’s time to sell their first home or property.

It turns out that while you cannot always deduct the cost of real estate acquisition on tax filings, you will generally owe taxes on proceeds over your cost basis after a sale. That leaves a lot of clients to seek out professional help from Real Estate CPA to understand their responsibilities and their rights under the law.

Tax Compliance with an Exchange

Here’s another scenario where professional CPA advice is integral.

So you’re trying to do an exchange of some kind where you alleviate a tax burden, but there are strict IRS requirements. Real Estate CPA helps with the tax compliance end of the equation, so that clients don’t get in hot water with tax regulators. Ignorance of the law is no excuse – but most investors have not studied up on these esoteric aspects of real estate law, so having a skilled professional in your corner is a must.

Real Estate Investment Trusts and Other Similar Vehicles

In yesterday’s market, real estate investment often took the form of purchasing entire properties, either for cash or with financed funding.

Now there are many other new ways for someone to get involved in the real estate process: from wholesaling to real estate investment trusts to other types of abstracted or derivative investments that rely on carefully structured financial agreements.

That’s another place where Real Estate CPA comes in handy helping clients to navigate a more sophisticated landscape. We provide the advice that investors need on which way to go, how to treat an REIT or other investment, and what tax burdens may be avoided through legal strategy, while others remain a “fact of life.”

Categorizing Expenses

A major part of any tax filing involved characterizing expenses. Whether or not an individual filer is involved in real estate, there are many opportunities to decrease taxable income by recording expenses.

What about expenses that are incurred while “flipping” a property for resale? What about rental expenses?

The realities around categorizing various real estate expenses are just too complex for many investors to really master comprehensively. At Real Estate CPA, that’s our business! We excel in giving the investor a full road map to treating expenses correctly and profiting from good documentation and categorization.

Talk to us about getting a better handle on the financial end of your real estate strategy.