Real Estate Accounting Services
Specialized accounting and tax services for real estate investors, developers, and property management companies. Maximize your returns and minimize your tax burden with expert guidance.
Comprehensive Real Estate Services
From individual rental properties to complex development projects, we provide specialized accounting services tailored to the real estate industry.
Rental Property Accounting
Starting at $150/month per property
Complete accounting for residential and commercial rental properties
Key Services:
- Rental income tracking and reporting
- Expense categorization and deduction optimization
- Depreciation calculations and schedules
- Tenant security deposit management
- +2 more services
Ideal For:
Individual landlords and small property management companies
Real Estate Development Accounting
Starting at $500/month per project
Specialized accounting for real estate development projects
Key Services:
- Project cost accounting and tracking
- Construction work-in-progress reporting
- Developer fee calculations
- Joint venture accounting
- +2 more services
Ideal For:
Real estate developers and construction companies
1031 Exchange Consulting
Starting at $2,500 per exchange
Expert guidance through like-kind exchange transactions
Key Services:
- 1031 exchange structuring and planning
- Identification period management
- Exchange period compliance
- Qualified intermediary coordination
- +2 more services
Ideal For:
Real estate investors seeking tax deferral strategies
Property Management Financial Reporting
Starting at $300/month
Comprehensive financial reporting for property management companies
Key Services:
- Owner financial statements
- Cash flow reporting by property
- Rent roll analysis and variance reporting
- Maintenance and capital expenditure tracking
- +2 more services
Ideal For:
Property management companies and REITs
Depreciation Optimization
Starting at $200/hour
Maximize depreciation benefits for real estate investments
Key Services:
- Cost segregation studies coordination
- Bonus depreciation strategies
- Section 179 deduction optimization
- Improvement vs. repair analysis
- +2 more services
Ideal For:
Real estate investors with significant property portfolios
Multi-State Tax Compliance
Starting at $150 per state return
Navigate complex multi-jurisdictional tax requirements
Key Services:
- State income tax filing strategies
- Non-resident state tax planning
- Composite and unified return filings
- State tax nexus analysis
- +2 more services
Ideal For:
Investors with properties across multiple states
Property Type Expertise
Each property type has unique accounting challenges and tax opportunities. Our specialized approach ensures optimal results for your specific investments.
Single-Family Rentals
Common Challenges:
- Expense tracking
- Depreciation calculations
- Tenant turnover costs
Our Solutions:
- Automated expense categorization
- Depreciation schedules
- Vacancy loss tracking
Tax Benefits:
Multi-Family Properties
Common Challenges:
- Unit-level profitability
- Common area allocations
- Capital improvement tracking
Our Solutions:
- Unit-by-unit reporting
- Expense allocation methods
- CapEx vs OpEx analysis
Tax Benefits:
Commercial Real Estate
Common Challenges:
- Complex lease structures
- Tenant improvement accounting
- Common area maintenance
Our Solutions:
- Lease accounting compliance
- TI amortization tracking
- CAM reconciliation
Tax Benefits:
Real Estate Funds
Common Challenges:
- Investor reporting
- Carried interest calculations
- Waterfall distributions
Our Solutions:
- Partner capital tracking
- Performance fee calculations
- Distribution automation
Tax Benefits:
Real Estate Tax Strategies
Advanced tax strategies specifically designed for real estate investors to maximize returns and minimize tax liability.
1031 Like-Kind Exchanges
Defer capital gains taxes through property exchanges
Key Benefits:
Important Considerations:
- 45-day identification period
- 180-day exchange period
- Like-kind property requirements
Cost Segregation Studies
Accelerate depreciation through component reclassification
Key Benefits:
Important Considerations:
- Property type suitability
- Cost-benefit analysis
- Audit risk management
Opportunity Zone Investing
Defer and reduce capital gains through QOZ investments
Key Benefits:
Important Considerations:
- 10-year holding period
- Qualified opportunity fund structure
- Substantial improvement requirements
Real Estate Professional Status
Unlock passive loss limitations through professional status
Key Benefits:
Important Considerations:
- 750-hour material participation
- More than 50% time requirement
- Documentation requirements
Key Real Estate Metrics
Understanding and tracking the right metrics is crucial for real estate investment success. We help you monitor and optimize these key performance indicators.
Cap Rate
Net Operating Income ÷ Property Value
Property valuation and investment comparison
Cash-on-Cash Return
Annual Cash Flow ÷ Cash Invested
Return on actual cash investment
Debt Service Coverage Ratio
Net Operating Income ÷ Annual Debt Service
Loan qualification and risk assessment
Gross Rent Multiplier
Property Value ÷ Gross Annual Rent
Quick property valuation method
Occupancy Rate
Occupied Units ÷ Total Units
Revenue stability and management efficiency
Operating Expense Ratio
Operating Expenses ÷ Gross Operating Income
Operational efficiency measurement
Compliance & Reporting
Real estate investments involve complex compliance requirements across multiple jurisdictions. We ensure you meet all obligations while optimizing your tax position.
Federal Tax Compliance
- Schedule E rental income reporting
- Form 4562 depreciation reporting
- Form 8824 like-kind exchange reporting
- Passive activity loss limitations
- Section 199A QBI deductions
State Tax Compliance
- Multi-state income tax filings
- Non-resident withholding requirements
- Property tax reporting and appeals
- State-specific depreciation adjustments
- Franchise tax and gross receipts taxes
Financial Reporting
- GAAP-compliant financial statements
- Fair value measurements (ASC 820)
- Lease accounting (ASC 842)
- Revenue recognition (ASC 606)
- Impairment testing (ASC 360)
Regulatory Compliance
- SEC reporting for public REITs
- Fair housing compliance
- Environmental disclosure requirements
- Anti-money laundering (AML) compliance
- Foreign investment reporting (FIRPTA)
Real Estate Client Success
See how our specialized real estate accounting services have helped clients optimize their investments and achieve significant tax savings.
"OICPA's real estate accounting expertise helped us optimize our depreciation strategies and save $75,000 annually."
"Their development accounting and 1031 exchange guidance has been invaluable for our growth strategy."
"The multi-state compliance support and financial reporting has streamlined our operations significantly."
Real Estate Accounting FAQ
Common questions about real estate accounting, taxation, and compliance requirements.
How is rental property income taxed?
Rental income is generally taxed as ordinary income on Schedule E. However, you can deduct operating expenses, depreciation, and other qualifying costs. Real estate professionals may be able to deduct losses against other income, while passive investors are subject to passive activity loss limitations.
What expenses can I deduct for rental properties?
Deductible expenses include mortgage interest, property taxes, insurance, repairs, maintenance, property management fees, advertising, legal fees, and depreciation. Capital improvements must be depreciated over time rather than deducted immediately.
How does depreciation work for real estate?
Residential rental property is depreciated over 27.5 years, while commercial property is depreciated over 39 years using straight-line depreciation. Cost segregation studies can accelerate depreciation on certain components like fixtures and equipment.
What is a 1031 exchange and how does it work?
A 1031 exchange allows you to defer capital gains taxes by exchanging one investment property for another like-kind property. You have 45 days to identify replacement properties and 180 days to complete the exchange through a qualified intermediary.
Do I need to file tax returns in multiple states?
If you own rental property in states other than your residence, you may need to file non-resident tax returns in those states. Some states have reciprocity agreements or composite filing options that can simplify compliance.
How can I qualify as a real estate professional for tax purposes?
To qualify as a real estate professional, you must spend more than 750 hours per year in real estate activities and more than 50% of your working time in real estate. This status allows you to deduct rental losses against other income without passive activity limitations.
Maximize Your Real Estate Investment Returns
Let our real estate accounting specialists help you optimize your portfolio's performance and minimize your tax burden through strategic planning and expert guidance.