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
- 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
- Rental Properties: Depreciation (cost segregation studies are great way to save tax dollars here.)
- Real Estate Professionals: Common Deductible Expenses
- 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.
|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.