Every year around tax time, homeowners ask the same question: Should I prepay my property taxes to get a bigger tax deduction? The answer is: sometimes — but it depends on your overall tax situation. And there's an important update homeowners need to know: the federal SALT deduction limit is
Real Estate Tax Strategy: Cost Segregation, Accelerated & Bonus Depreciation
Real estate can be an excellent long-term investment, but property owners don't have to wait decades to receive the tax benefits associated with depreciation. For certain real estate investors, a cost segregation study combined with accelerated depreciation and bonus depreciation can
How to Reduce Taxes After Selling an Investment Property
Selling a property can be a fantastic financial move. You bought an asset, watched it appreciate, and finally decided it was time to cash out. Then comes the less exciting part: the tax bill. Depending on how long you owned the property, how you used it, your original cost basis, depreciation,
537 Installment Sale Trusts for Commercial Real Estate: Strategy vs. Scrutiny
When commercial real estate property owners in the Seattle and Puget Sound area prepare for a major exit, capital gains taxes are often the biggest hurdle to preserving net proceeds. Between federal capital gains, depreciation recapture, and Washington’s local real estate excise taxes (REET), an
Cost Segregation for STRs: A Tax Strategy Most Overlook
If you own a short-term rental (STR) -- be it a beach condo, mountain cabin, or investment property listed on Airbnb -- there’s a tax strategy that could dramatically accelerate your deductions: cost segregation. For many STR owners, this can mean thousands (and sometimes tens of thousands) of
Short Sale or Rent Out Your Home?
When your mortgage balance is higher than what your home can sell for, the situation can feel overwhelming. Many Washington homeowners find themselves weighing two difficult options: renting out the property (often at a loss), or pursuing a short sale. Each path has pros, cons, and long-term tax
If Your Real Estate Professional Status (REPS) Gets Denied in an Audit
Real estate investors often hear about the tax benefits of qualifying as a Real Estate Professional (REPS). When done correctly, REPS status can unlock significant deductions, allowing you to offset W2 income with passive real estate losses. But what happens if you claim REPS based on your CPA’s
Form 8825 for Partnerships & S Corps
If you're involved in real estate through a partnership or S corporation, IRS Form 8825 (available for download here) is a key tax form you need to get familiar with. While it may not get as much attention as the 1040 or Schedule E, this form plays a major role in how your rental income is reported