Investing in real estate can be very lucrative with returns that often outpace the stock market. But to be successful and maximize your profits, you need to manage your taxes properly. That is where a CPA with specialized real estate experience can help. They know the best strategies to keep your tax liabilities to a minimum without incurring penalties or triggering an audit. Here are just a few tax benefits that hiring a real estate CPA can provide for real estate investors.
Knowing How to Structure Your Real Estate Investments
If you have several properties as a real estate investor, or you are working with multiple partners, there may be certain tax advantages to forming an S-Corp or an LLC. An experienced CPA can walk you through the process of forming a corporation and help you determine which type of business entity is the best for your needs.
Minimizing Tax Liability on Rental Income
A CPA who is experienced in real estate can help you offset your taxes on rental income by taking property depreciation into account. By deducting a set amount every year for property depreciation, you can effectively reduce your tax liability.
Deducting Repair and Maintenance Costs
Every rental property requires an occasional repair. The costs of everyday repairs and maintenance can often be deducted to minimize your tax liabilities. However, it takes an experienced real estate CPA to navigate the complex tax regulations around repairs and avoid misclassifying restorations or capital improvements as repairs.
Navigating 1031 Exchanges
1031 exchanges can help you to defer capital gains taxes so that you can buy larger properties without incurring tax penalties. An experienced CPA can walk you through the process and help you maximize your returns.
Managing Property Purchases and Sales
When you buy or sell a property as a real estate investor, there will be significant tax implications. A CPA specializing in real estate can help you navigate the sales process and keep your tax liabilities as low as possible.
CPA Services for Real Estate Investors in Dallas or Houston
Whether you are a seasoned real estate investor or you are buying your first property, working with a real estate CPA can help you maximize your returns while staying compliant with tax regulations and keeping your tax liabilities to a minimum. When you need a CPA with in-depth knowledge of the real estate industry, turn to our team at Gurian CPA. We feature two locations to work with real estate investors throughout the Dallas and Houston areas. We offer everything from tax planning and preparation to business entity formation and complete accounting and bookkeeping services for your real estate business. We are committed to the success of your business, and we will work hard to help you reach your financial goals.
When you want to work with some of the best real estate accountants in the Dallas area, choose Gurian CPA. Call (469) 306-9866 today for expert tax advice and professional guidance from our friendly, experienced team.
