If you want to grow and scale your real estate business, you need real estate accounting in Los Angeles. A seasoned accountant understands the unique landscape of your business and how to make the most of your deductions while enhancing profits. Learn more about GJR Consulting and how working with our team helps build a foundation for success.
Explore 1031 Exchanges
If you’re venturing into real estate investing, exploring the potential benefits of a 1031 exchange could save you a small fortune during tax season. This tax-deferral strategy allows you to legally defer capital gains taxes if you purchase a like-kind property. The process helps you defer taxes indefinitely while allowing investors more flexibility in scaling up their businesses.
There are a few rules about using 1031 Exchanges, including:
- You must purchase another “like-kind” investment property
- The replacement property needs to be of equal or greater value
- All proceeds from the sale must be invested
- The title holder must also be the taxpayer
- You must identify a new property within 45 days and purchase the property within 180 days
A few ways to approach a 1031 Exchange include a simultaneous exchange, delayed exchange, reverse exchange, and construction or improvement exchange. Real estate accounting in Los Angeles can help determine if 1031 exchanges are appropriate for your business and how to maximize them to your advantage.
Explore Business Structures
Your real estate business may benefit from a different legal structure than what you currently use. Or, if you’re a new business, you can maximize your tax returns from the start by choosing the correct entity for your venture. In most cases, an S-corporation or LLC is likely the best option for a real estate agency or independent realtor.
It’s vital to work with an expert real estate accounting in Los Angeles team to explore which structure is best, which is often determined by if you’re a long-term or short-term investor. Your depreciation deductions, tax-free like-kind exchanges, and installment sales method may change depending on which structure you choose.
Maximize Your Business Deductions
If you run a real estate business, you could miss out on valuable deductions to reinvest into your success. Here are a few of the possible tax deductions you could be missing out on:
- Auto
- Office Supplies
- Licenses and education
- Gifts
- Insurance
- Software fees
- Employee Payroll & Payroll Taxes
- Home office
- Desk fees
- Marketing and advertising fees
- Paid out commissions
Explore the full potential of your tax deductions with the help of a real estate accounting in Los Angeles team.
Get a Tailored Approach for Real Estate Agents and Real Estate Brokers
Your business structure, tax deductions, and financial foundation for your business will depend on whether you’re a real estate agent or real estate broker. Your deductions may be higher as a broker that pays out commissions and oversees multiple agents. Our team can assess how to maximize your earnings, reduce your tax burdens, and grow your business.
Address IRS Tax Problems
Are you dealing with an IRS tax problem you don’t know how to resolve? Figuring out real-estate specific considerations can be confusing, even for accountants who do not specialize in the industry. Our experts look at your active and passive investments, clean up your records, and ensure your business is compliant while enjoying the tax deductions to your business is entitled to.
Empower Your Real Estate Business with GJR Consulting
Business owners need to make sure their short-term goals for productivity align with a long-term vision—from their mission statement to their unique product. Don’t let a lack of preparation be the reason you don’t succeed. Reach out to our team today and put your future in the right hands.