Accounting and Financial Expertise For Your Real Estate Business

Real Estate Investor Tax and Accounting Services

Passive, Non-Passive, and Active

The US revenue department defines passive income as being all your earnings for which you don’t have to make any specific effort. For the most part, when it comes to passive income tax, it is usually deducted on passive income, which is problematic for new real estate investors. For investors just starting out, their investments may be cash flow positive, but showing a paper loss because of depreciation and other real estate specific rules, resulting in losses that simply build up until the property is sold. In addition to understanding how to account for passive, non-passive, and active income, we can work with you to structure your businesses to minimize this problem. As a real estate accounting firm, we can help you with a strategy to move losses into the non-passive category, we can help you lower your taxes today, but only if we are involved early in the process to help you set up the vehicles properly.

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