Real Estate Tax Strategy
Tax Planning Questions Real Estate Investors Should Ask
Real estate has more tax planning levers than almost any other investment class — and more ways to misuse them. These are the questions investors should be asking quarterly, not just at year-end.
Am I tracking basis correctly across the portfolio?
Adjusted basis drives depreciation, gain on sale, and like-kind exchange math. Properties bought 10 years ago often have basis tracking that's drifted from reality.
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Where are my suspended passive losses?
Suspended losses can be triggered by passive income, sale of the activity, or qualifying as a real estate professional. Knowing the balance helps you plan dispositions and elections.
Is my entity structure still right for the portfolio?
Two properties tolerate a single LLC. Ten properties usually don't. Asset protection, financing requirements, and tax efficiency all change with portfolio size.
Should I do a cost seg on the most recent acquisition?
Best run in the year placed in service. Catch-up studies are possible but more complex. The bonus depreciation phase-down means timing matters more than it used to.
What's my exit plan for each property?
Sale, 1031 exchange, refinance, hold to step-up at death — each has different tax consequences. Building the exit plan early changes the holding decisions you make today.
Am I tracking REPS hours if I claim it?
Audit defense requires contemporaneous logs. If you're not logging, you don't have the documentation — even if you have the hours.
Want to apply this to your situation?
Book a consultation with a Kuuni Partners advisor — Georgia-based, serving clients nationwide.
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