If you’re a real estate investor or landlord, there are a few steps you can take to maximize your business’s returns; utilizing a real estate CPA is one of these moves.
CPAs are individuals who have passed strict education and licensing requirements. These requirements ensure that CPAs thoroughly understand the intricacies of the tax code. Using a CPA that specializes in real estate matters has several advantages that can help you increase your financial returns for your real estate business.
Real Estate CPAs Help You Minimize Your Tax Liability
As a real estate investor, you may believe you can handle your own tax returns. While you can likely figure out the instructions on how to prepare a tax return, most individuals don’t have an in-depth understanding of the tax code.
Understanding the specifics of the tax code is essential for minimizing your tax liability and structuring your tax return to help you get the most from your tax write-offs. We’ll suggest strategies that will lower your final tax bill.
An Experienced CPA Can Assist You with Better Structuring Your Real Estate Business
Though establishing your real estate company as a sole proprietorship seems like the simplest option, this doesn’t mean it’s the best choice for minimizing your tax liability. A real estate CPA will go over other alternatives, like an S corporation and LLC, along with the tax implications associated with changing the structuring of your business.
CPAs Stay Up-to-Date on Changes to the Tax Code
Tax rules and regulations are frequently changing. Actions that had financial benefits for your company last year may no longer work to reduce your tax obligation.
A CPA understands recent changes to the tax code and what these new laws mean for their clients. They’ll let you know how changes to tax laws will affect your business so that you can take the appropriate moves to continue to reduce your tax liability.
Sometimes, even proposed changes to the tax code can encourage real estate investors to sell their existing properties or acquire new properties. Your CPA will make sure you understand whether a change to the tax code is just a rumor or if it’s an actual change that should influence your business decisions.
A CPA Can Offer Guidance That Will Help You Grow Your Business
Experienced CPAs can identify real estate trends and cycles that can impact your business. They can provide suggestions about whether current conditions are ideal for selling some of your real estate portfolio or if it’s better to hold onto your real estate to realize additional property appreciation.
Your CPA will also help you buy, sell, and rent properties using techniques that reduce your tax liability. This ensures that you keep as much money as possible in your business so that you can continue to work towards additional growth and enhance your profitability.
How to Start Working with a Real Estate CPA
At Gurian CPA Firm, we have the experience and expertise to help you make the right moves for your real estate business. Contact us to request a meeting.
