With four decades of real estate accounting experience, Robert Hall & Associates has become a leader in the real estate industry for tax preparation. The multi-faceted nature of Robert Hall & Associates allows our firm to specialize in this industry on a micro-level. By concentrating on tax structuring for investors, agents, brokers, developers, and property managers, Robert Hall & Associates can cater to the specific deductions of each division in order to ensure maximum tax efficiency. Our real estate tax consultants will work to:
- Structure tax efficient entities for various real estate activities
- Conduct a portfolio analysis
- Property tax analysis, negotiation, and representation
- Help create a tax strategy that allows you to legally keep as much money as possible
- Help you make smart real estate investment decisions
- Prepare your annual tax returns
There are numerous tax advantages to owning real estate, particularly if you’re an investor seeking the long-term stability and growth potential that real estate provides. Some of the the tax-related real estate situations we can help with include:
- Depreciation: The wearing down of an asset over time is known as depreciation. It is a “paper loss”: You don’t actually spend money out of your pocket, however you are still entitled to credit for the expense. This expense can offset taxable income and save money on your tax bill.
- Installment sales: Also known as seller financing or a seller carry-back mortgage, this is a method of reducing taxes on the sale of real estate. Installment sales are only available to property investors (not house flippers). They allow an investor to defer capital gains tax, but the entire amount of accumulated depreciation must be recaptured at the initial time of sale.
- Section 1031 tax-free exchange: A 1031 exchange allows you to trade one property for another without paying taxes. You must follow specific rules, and you must be classified as an investor (not a dealer who flips houses). In return you get to use 100% of the profits from the sale to reinvest in the next property. This maximizes the growth and compounding of your investments.
- Live-In Flip: A handy method of avoiding capital gains tax is to use a strategy called the “Live-In Flip.” Buy and immediately move into a property as your principle residence; as long as you live in the home for two out of the next five years, you can personally earn an annual tax-free profit of up to $250,000 as an individual or $500,000 as a couple.
Top Real Estate Accounting Firm Serving Glendale, Burbank, and Pasadena
Robert Hall & Associates has over 45 years assisting real estate developers and investors implement the best strategies and enhance the values of their real estate holdings. We know how competitive and fast-paced the industry is, so our tax consultants will provide the latest information, anticipate needs, and offer solutions that clients might not have considered. See the difference the right real estate accountant can make for your business. Call 818.242.4888 today or fill out our online contact form to schedule a consultation.