4 Real Estate Tax Tips for Savvy Investors

Dec 16, 2020Business Tax, Family Office, Individual Tax, Real Estate Tax, Tax Planning

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4 Real Estate Tax Tips for Savvy Investors

A common mistake that many real estate investors make is in their reactive approach to tax season. As the saying goes, failing to plan is planning to fail; this adage applies ten-fold when it comes to your taxes. To help you be a savvier investor, our tax advisors are here with some real estate tax tips!

1. Hire the Right CPA

As a real estate investor, the process of correctly filing your taxes can feel like navigating a mine field. The slightest misstep could set off an explosion of audits or income loss. However, a CPA who specializes in real estate tax planning can make sure you’re operating within the parameters of the most up-to-date compliance laws. Furthermore, the right real estate tax advisor has an extensive knowledge of which forms and deductions apply and can identify the best planning opportunities to save you more money! The fee you’ll pay for the help of a real estate CPA will be nominal compared to the amount of time and money you’ll save.

2. Separate Your Long and Short Term Investments

While a good real estate CPA can tackle the bulk of your tax work, there are ways you can help the process. Start by separating your long and short term investments. This crucial step can make the difference in how much you save on your taxes, since the tax rates will differ between the two. Think of it this way: if you’re an HGTV-level house flipper, consider those flipped houses short term investments. On the other hand, any buy and hold properties should be considered long term investments.

Access Your Records from Anywhere

Filing electronically makes for faster processing and earlier returns! With our online portal system, all your documents are in one secure place where you can easily access and upload information as needed.

3. Track Your Expenses

Another key to successful tax planning as a real estate investor is tracking your expenses. There are numerous deductions available to real estate investors – but those who keep an accurate record of their expenses benefit the most. With that in mind, you should make it a year-round priority to track and record every business expense, from appraisal fees and commissions to advertising and business cards.

4. File as Early as Possible

Last but not least, you should always assume that early is on time and on time is late when it comes to filing your tax return. Even if you do hire a CPA who can knock it out for you, your tax return cannot be completed until you’ve turned in all necessary documents. Without last minute tax returns looming, your CPA will be able to devote much more time and attention to additional tax planning that can save you more money!

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Work with Our Real Estate Tax Pros

Our tax advisors serve a wide array of real estate investors, with varying backgrounds and needs. With a team full of experienced CPAs, we are passionate about helping investors keep more of their money and reach their financial goals. Tackle your taxes with our experts – give us a call at (972) 771-6707, or visit our website!

Invest with the Best

With advisors who specialize in real estate tax planning, Lifetime Tax is your best bet for the most savings and your safest shield from compliance violations and audits! We are just a click or call away.


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Filing an Extension for Tax Deadlines – Why and How You Do It

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The major tax deadline we all know and love is April 15. That being said, those who file for an extension have until October 15th to prepare their federal tax return. Why extend the deadline? The most common reason for this is to allow more time to carry out financial tax planning strategies for themselves or their businesses. Read on to learn more about tax deadline extensions.