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Real Estate Accounting & Tax

Real Estate Accounting & Tax

Real Estate Accounting & Tax Services

Real Estate Accounting & Tax can take on virtually unlimited forms. We will summarize a few common types of client requests below. 

Tax returns for individuals with rental properties

We specialize in rental properties, whether they are in your state of residence, out-of-state, or outside of the country. These are all common situations for us. Our approach includes personalized strategies that consider local, state, and international tax implications, ensuring that your tax burden is minimized while maximizing your return on investment. Additionally, we assist clients with understanding and navigating the nuances of depreciation, property management expenses, and other critical factors that impact your financial outcome.
 
If you are new to investing in rental properties and want to learn the tax & operational basics related to this exciting type of investment, you can also schedule a call with the team to learn the pros & cons of real estate investing. 

1031 Exchanges 

We are a 1031 exchange intermediary and are happy to work with you through the entire 1031 exchange process. If you are not sure if a 1031 exchange makes sense for you, please contact us to schedule an appointment to understand how the process works. 

House flips

We have quite a few clients that either flip homes full time or have several projects as a side venture. Our team specializes in tax optimization and strategy for this type of situation and will ensure you are maximizing all possible deductions, exclusions, etc. From acquisition to renovation and sale, we offer comprehensive tax planning that helps you minimize capital gains taxes and other liabilities, allowing you to focus on the profitability of your projects.

Sale of Primary Residence 

We are frequently contacted to consult with clients regarding their sale of their home. Common questions include: will I pay taxes on the capital gains? If so, how much can I expect to pay? We provide in-depth analysis and planning services to help you understand the tax implications of your home sale, including potential exemptions and strategies to reduce your tax liability. Our goal is to ensure that you retain as much of your profit as possible, whether you are downsizing, upgrading, or relocating.

Real Estate Agents

With countless leading real estate agents as clients, we have a wealth of experience with tax planning & strategy for this type of taxpayer. The opportunities for tax strategy here are really endless, from structuring as s-corp, c-corp, or LLC to SEP/solo 401k plans and other tax deferral strategies. Whether you need annual tax preparation or a consulting call to determine tax optimization strategy, reach out to us below. 

Services HOAs, HDFCs, Condos, Co-ops, Cond-ops, or Condo-Tels

We perform the full range of services for this type of client – this includes monthly bookkeeping, annual financial statement audit, review, or compilation, 1120-H or annual tax filings, quarterly taxes, payroll, 1099 issuance, etc. We also offer accounting outsourcing for buildings that are self-managed. Just reach out with our web form below. 

Real Estate Accounting

We offer streamlined financial services for property managers and owners. Such services include bookkeeping, financial reporting, budgeting, rent roll management, expense tracking, tax planning, and financial analysis. Trust us to handle your property’s financial operations while you focus on core business activities.
 
Private equity funds that invest in real estate
We are a full service accountant for PE funds that focus in real estate, including fund administration, partners capital statement issuance, K-1s, annual returns, 1099s, monthly/quarterly/annual statements, and annual audits, reviews, and compilations
 
 

If you need help with any of these steps, please contact us and we can get to work for you – we serve all 50 states & international, so just let us know how we can assist you.

 

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George Dimov - Founding President of George Dimov CPA and Tax Specialists, an online CPA firm with the highest standards

George Dimov

President

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Stan Shraybman, MBA, EA

Senior Tax Manager

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Bob Liu, CPA

Senior Accountant

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Xintian Wang, CPA

Senior Tax Manager

MEET THE TEAM

Frequently Asked Questions

1. What tax considerations should I be aware of as a real estate investor?

As a real estate investor, you should be aware of various tax implications, including depreciation, capital gains, and the deductibility of mortgage interest and property management expenses. Depending on the nature of your investments, you may also need to consider the implications of passive activity loss rules, 1031 exchanges, and the potential for state-specific taxes. Consulting with a tax professional can help you navigate these complexities and optimize your tax situation.

2. How can a 1031 exchange benefit me, and when should I consider it?

A 1031 exchange allows you to defer capital gains taxes when you sell an investment property and reinvest the proceeds into a like-kind property. This can be highly beneficial if you’re looking to upgrade or diversify your real estate portfolio without triggering a significant tax liability. You should consider a 1031 exchange if you plan to reinvest in another property and want to maximize your investment capital. It’s important to consult with a tax advisor to ensure compliance with IRS regulations and determine if a 1031 exchange is right for you.

3. What are the tax implications of flipping houses?

Flipping houses typically results in short-term capital gains, which are taxed at your ordinary income tax rate. However, with proper tax planning, you can minimize your tax burden by deducting expenses related to the renovation and sale of the property. You may also be eligible for certain tax strategies, such as structuring your flipping business as an LLC or S-Corp to optimize your tax situation. Working with a tax professional can help you maximize deductions and reduce your overall tax liability.

4. How do I know if I need to pay taxes on the sale of my primary residence?

The IRS allows you to exclude up to $250,000 of capital gains ($500,000 for married couples) from the sale of your primary residence if you’ve lived in the home for at least two of the last five years. However, there are specific rules and exceptions that may apply, such as if you’ve used part of your home for business purposes or if you’ve sold another home within the past two years. It’s important to consult with a tax advisor to determine your eligibility for this exclusion and understand any potential tax liabilities.

5. What accounting services do you offer for property managers and owners?

We offer a comprehensive range of real estate accounting services for property managers and owners, including bookkeeping, financial reporting, budgeting, rent roll management, expense tracking, tax planning, and financial analysis. Our services are designed to streamline your financial operations, ensuring accuracy and compliance while helping you optimize cash flow and profitability. Whether you manage a single property or an extensive portfolio, we can tailor our services to meet your specific needs.