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The IRS treats repairs as immediately deductible expenses that restore property to its original condition, while capital improvements must be capitalized and depreciated over 27.5-39 years.
An IRS 1031 exchange (named for Internal Revenue Code Section 1031) allows real estate investors to defer capital gains taxes when selling investment property by reinvesting proceeds into like-kind replacement property.
The IRS treats regular house flippers as "dealers" who pay ordinary income tax (10%-37% based on 2025 tax brackets) plus 15.3% self-employment tax on profits.
A Miami property CPA firm provides specialized accounting and tax services for real estate investors, developers, property managers, and foreign property owners.
A virtual accountant for landlords is a remote accounting professional who manages your rental property finances using cloud-based software.
Phoenix real estate bookkeeping services handle property-specific accounting including rental income tracking, 1031 exchange documentation, depreciation schedules, and multi-property cash flow management.
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.
