Strategies to optimize your finances

Illinois real estate tax filing requires property owners to pay taxes in two installments to their county treasurer, typically due June 1st and September 1st in most counties.

GAAP (Generally Accepted Accounting Principles) for real estate requires accrual-based accounting, straight-line revenue recognition for leases, capitalization of development costs, and regular impairment testing of properties.

Setting up a C corporation for real estate generally creates unfavorable tax consequences due to double taxation, income is taxed at the corporate level (21% federal rate), then again when distributed to shareholders as dividends.

Section 179 deductions are available for rental property, but only if your rental activity qualifies as a trade or business (not passive investment) and only for specific property types.

Master Publication 946 depreciation rules for 2025. Section 179 increased to $1,250,000, bonus depreciation at 40%. Real strategies from 200+ CPA firm partnerships.

Form 8582 is the IRS form you must file to report passive activity losses, including rental real estate losses that exceed your passive income.