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.
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