Managing your real estate investments is no easy task. Rules and regulations are constantly changing and finding experienced CPAs that specialize in real estate accounting can become challenging. Whether you are a small real estate investor that deals with single-family and multi-family homes, a large developer, or in property management, we are the firm for you. Here are some of the services we offer:
1031 Exchange Planning – A 1031 exchange is a tool for real property owners to defer taxes when their property is sold. Over the years, the IRS has made it harder to avoid capital gains tax on the sale of investment properties. In a 1031 Exchange, the property is sold while preserving net worth. Our firm understands the guidelines surrounding 1031 exchanges and we have set up a great deal of 1031 exchanges for our clients.
Property Management – With the housing market crash over the last few years, the need for good accounting for multi-unit properties has risen. Having a CPA with a strong accounting background that specializes in property management has become essential. Whether it’s a home owner’s association, a real estate trust, or a complicated multiple-real estate transaction, Wallace Neumann & Verville, LLP can meet your needs.
Entity Selection – There are many different vehicles for real estate and understanding the right vehicle for you is important. You may be interested in owning interest in a Real Estate LLC that owns multiple properties or setting up an LLC for real estate you already own. Additionally, the State of Nevada has just created a new real estate investment LLC vehicle called a Nevada Series LLC. The Nevada Series LLC is a real estate investor’s new best friend. We understand Series LLCs, how to account for them, and how they are beneficial for real estate investors.
Real Estate Professionals – A big IRS audit issue is whether an individual is a real estate professional or a passive real estate investor. The tax consequences for these two types of investors are wildly different. In a recent tax court ruling, a taxpayer had tried to defend himself by using “TurboTax” as a defense as to why he believed he was a Real Estate Professional. Needless to say, the taxpayer lost in court and owed over $11,500.00 in back taxes and penalties. At Wallace Neumann & Verville, LLP, we are well versed in the tax code and understand what standards are used in determining the right real estate classification for our clients.
In addition to the services listed above, we are knowledgeable on other real estate issues such as:
- debt restructuring
- tax consequences associated with short sales and foreclosures
- rules surrounding the conversion of your primary residence to an investment home
- tax deferral potential of setting up your real estate as a retirement vehicle
- strategic planning regarding real estate
Please contact Jason Neumann or Jeff Jones for more information about the services we offer in regards to real estate.
