Real Estate CPAs
There are a few different lenses to look at tax savings with real estate professionals in the greater Seattle area. So we’ll touch on a few briefly and provide some noteworthy points. If you have questions beyond this, get in touch with us.
Personal Residence
Deductible Expenses
- Mortgage Interest
- Points
- Qualified Mortgage Insurance
- Real Estate Taxes
Rental Property
Deductible Expenses
- Advertising
- Cleaning
- Utilities
- Insurance
- Taxes
- Interest
Notes
- Report Income when the income is received
- Security Deposits are not included in income
- Rental expenses are deductible in the year paid
- Start deducting rental income whether or not there is a tenant
- Do not deduct uncollected rent.
Depreciation
(cost segregation studies are great way to save tax dollars here.)
- Building
- Appliances
- Carpets
- Furniture
- Fences
Real Estate Professionals
Deductible Expenses
- Advertising
- Professional Fees
- Educational Materials
- Business Travel Expenses
- Business Entertainment
House Flipping Notes
- Can be taxed as either ordinary income or capital gain income
- Ordinary treatment is ideal when you have losses
- Capital Gain treatment is ideal when you have gains
Repairs Vs Improvements
- The following chart will demonstrate how some of the more common improvements/repairs are categorized.
| Repairs | Improvements |
| Painting | Room Additions |
| Fixing Floors | New Roof |
| Fixing Leaks | New Plumbing |
| Replacing Broken Windows | New Carpet |
If you’d like a bit more guidance, give us a call at 1-425-483-6600 or send us an email at info@huddlestontax.com and we’ll address your specific concerns, and help you establish a tax plan that works for you.
Check out our Google, Yelp, and Yahoo Reviews -or- Read our Self Employed Tax Guide
Find a Meeting Location Near You.