Buying, holding, or selling property? We connect rental accounting, depreciation, and the tax effect of a sale, so that you can weigh a decision before you make it.
Owning real estate brings ongoing accounting and tax responsibilities, along with important decisions about purchases, improvements, financing, and sales. We help rental property owners, investors, and developers address those needs while considering how the properties fit with their businesses and personal finances.
When it is appropriate, we evaluate options such as tax-deferred property exchanges and the timing of depreciation deductions. We explain the potential benefits, costs, and future tax consequences, so that you can judge a strategy in the context of your plans.
Four situations come up most often.
A 1031 exchange lets you defer tax when you sell investment or business property and buy other property of the same kind. The deadlines are strict, and the planning starts before you sell.
Some owners want to stop managing buildings but keep their money in real estate. A Delaware statutory trust can hold property that qualifies for an exchange, without day-to-day management. We review the tax side with your attorney. We do not sell or place these investments.
Depreciation lets you deduct part of a building’s cost each year. A cost segregation study separates parts of a building so that some can be deducted faster. It is usually most useful when it is done early in your ownership.
Depreciation you have claimed can be taxed when you sell, sometimes at a higher rate than other gains. We estimate that cost before you buy and before you sell, so that it does not arrive as a surprise.
Commercial property owner no longer wanted to manage or deal with the headaches of property ownership. We structured DST investments that enabled a continued income stream, deferring the gain on the $5.6M sale while removing operational responsibility entirely. “Tim structured a 1031 that let us diversify without triggering gains.”. Real Estate Investor, Orange County
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You tell us what you are facing or planning. We listen, ask questions, and tell you whether we are the right fit.
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If we work together, we agree on what we will do, who is responsible for what, and the fee, before the work begins.
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We gather the facts, explain your options in plain terms, and act while your choices are still open.
If yours is not here, the Assessment answers it directly.
A DST is a vehicle that holds a 1031 replacement property. The 1031 is the tax provision; the DST is the institutional-grade real estate investment that satisfies it. You get 1031 deferral plus passive ownership.
Any commercial property over ~$500K basis, ideally within the first tax year of acquisition. We've also done lookback studies on properties owned for years, the accelerated depreciation can be claimed via a 3115 form change-in-accounting filing.
The original 2017 gain-deferral clock has largely run. A 10-year basis step-up on a qualified opportunity fund can still matter if the facts support it. We analyze whether a zone investment fits the rest of the structure. We do not sell funds.
Call or text the Irvine or Palm Desert office. A person answers, and a senior CPA follows up.
Start with an Assessment