Is your real estate tax return done right?
Real Estate industry professionals and investors lose more tax dollars than any other industry due to poorly prepared tax returns.
Real estate related tax returns contain more errors than any other business type. I believe the reason for this is lack of awareness of the complicated nuances of tax law for real estate. It’s unfortunate, but people will sell you a tax return despite the fact they don’t understand the tax laws behind those forms.
Every year I see hundreds of real estate tax returns prepared by other tax professionals in town. The errors are shocking, and mostly due to lack of awareness of the rules.
The most common error I find is absence of the best tax write off available to rental real estate – tax depreciation. It’s shocking to me that the biggest tax benefit offered to real estate owners is the also the most common missed deduction on tax returns for real estate properties. Every year, I save real estate owners thousands and thousands of dollars by amending erroneous tax returns to account for the lack of depreciation.
At AB CPA, we see hundreds of real estate related tax returns every year. From developers to architects to real estate investors to designers to builders to flippers, you name it, we’ve seen it.
Some of these common errors that we will help you avoid are:
- Lack of tax depreciation
- Failure to properly utilize your loss generated by selling and/or renting real
- Estate not using your special allowance or not properly planning for it
- Using an LLC to save taxes
- Using an LLC for a rental property and getting caught in the gross receipts trap
- Wondering what your peers are doing
Taxes are more than just numbers in boxes. Your Real Estate business or investment taxes should be a thoughtful and planned processes. AB CPA offers thoughtful, trustworthy tax advice.
AB CPA, Inc. is a Real Estate tax return specialist. With nearly 20 years of experience preparing Real Estate returns in San Diego, AB CPA, Inc. can ensure your tax return is the best it can be. Top quality tax advising makes sure that you don’t pay one dollar more than necessary in tax.