Real Estate CPA

There are a few different lenses to look at tax savings with real estate professionals in the greater Seattle area. So we’ll touch on a few briefly and provide some noteworthy points. If you have questions beyond this, get in touch with us.

  • Personal Residence: Deductible Expenses
    • Mortgage Interest
    • Points
    • Qualified Mortgage Insurance
    • Real Estate Taxes
  • Rental Properties: Notes
    • Report Income when the income is received
    • Security Deposits are not included in income
    • Rental expenses are deductible in the year paid
    • Start deducting rental income whether or not there is a tenant
    • Do not deduct uncollected rent.

  • Rental Properties: Deductible Expenses
    • Advertising
    • Cleaning
    • Utilities
    • Insurance
    • Taxes
    • Interest
  • Rental Properties: Depreciation (cost segregation studies are great way to save tax dollars here.)
    • Building
    • Appliances
    • Carpets
    • Furniture
    • Fences
  • Real Estate Professionals: Common Deductible Expenses
    • Advertising
    • Professional Fees
    • Educational Materials
    • Business Travel Expenses
    • Business Entertainment
  • House Flipping: Notes
    • Can be taxes as either ordinary income or capital gain income
    • Ordinary treatment is ideal when you have losses
    • Capital Gain treatment is ideal when you have gains
  • Repairs versus Improvements: the following chart will demonstrate how some of the more common improvements/repairs are categorized.
Repairs Improvements
Painting Room Additions
Fixing Floors New Roof
Fixing Leaks New Plumbing
Replacing Broken Windows New Carpet

If you’d like a bit more guidance, give us a call we’ll address your specific concerns, and help you establish a tax plan that works for you.

Huddleston Tax CPAs of Seattle & Bellevue
Certified Public Accountants Focused on Small Business

(800) 376-1785
40 Lake Bellevue Suite 100, Bellevue, WA 98005

Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Mercer Island, West Seattle, Auburn, Snohomish, Mukilteo, Seatac, Des Moines, Woodinville, Edmonds, Sammamish and Issaquah. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.