Real Estate Tax Services for Investors & Landlords
Smarter Tax Strategies for Real Estate Owners | Real Estate CPA
Owning property can build significant wealth — but without the right tax strategy, it can also create unexpected costs. At MT Bachani CPA, we work with:
- Individual investors with rental homes or growing portfolios
- Companies investing in real estate for long-term growth
- Airbnb, VRBO, and short-term rental owners seeking the right tax structure
- Realtors and landlords managing single or multiple properties
We help you reduce taxes, protect your assets, and plan for long-term success — while keeping you compliant with IRS and state rules.
Real-World Scenarios We Solve
Buying Property with Retirement Funds
Many clients use their 401(k) or IRA to buy property. We help you balance the withdrawal penalties against the tax benefits of depreciation and deductions, so you can invest without hurting your retirement savings.
Two or More Owners on a Property
When friends, family, or partners buy a property together, the big question is:
- Should ownership stay in personal names?
- Or should a company be formed?
We guide you based on liability, tax filing, and long-term goals.
Maximizing Depreciation & Cash Flow
A cost segregation study is a strategic tax planning tool used to identify and classify assets acquired in a single transaction, such as real property, personal property, land, or other assets, for federal income tax purposes
Rental Income Reporting
Should rental income go on Schedule E (passive) or Schedule C (active business)? The answer changes how much tax you pay. We make sure you’re reporting correctly — whether you own long-term rentals, short-term rentals, or operate as a realtor.
Planning the Exit
Selling a property doesn’t have to mean a big tax bill. With tools like 1031 exchanges, installment sales, and opportunity zones, we help you reinvest gains and reduce taxes — keeping more money in your portfolio.
Multi-Property Strategy
For a growing portfolio, we help you decide on the right structure. Is it better to have one LLC for all your properties (simpler and cheaper to maintain) or a separate LLC for each property (provides the highest level of liability protection)? We'll analyze your risk, costs, and long-term goals to recommend the ideal setup, which may even include a Series LLC.
Ready to Invest Smarter?
Every property is different. Every investor is different. The tax strategy should be too.
Strategic Tax Planning We Implement
Instead of depreciating your entire property over 27.5 years, a cost segregation study identifies parts of the building (flooring, appliances, landscaping, electrical systems) that can be depreciated over 5, 7, or 15 years.
Result: Larger write-offs in early years, lower taxable income, and stronger cash flow.
A 1031 exchange (like-kind exchange) lets you defer capital gains taxes when you sell a property, as long as you reinvest in another qualifying property.
The Benefit: Keep more of your money invested, grow your portfolio faster, and avoid an immediate tax hit.
We guide you through the strict 45-day identification and 180-day completion deadlines, ensuring compliance every step of the way.
Normally, rental losses are passive and can’t offset W-2 wages. But if you qualify as a Real Estate Professional (REP), your rental losses can be treated as nonpassive, creating major tax savings.
To Qualify:
- More than half of your personal services must be in real estate trades or businesses
- You must spend at least 750 hours per year on real estate activities in which you materially participate
We evaluate if REP status benefits you, help you document hours, and make sure your position is IRS-ready.
Why Real Estate Clients Choose Us
Broad Client Base
From individual landlords to real estate companies and short-term rental operators
CPA Expertise + Real Estate Focus
Decades of experience with real estate tax planning and depreciation strategies
Tailored to You
Whether you own one property or a portfolio, we align strategies with your income, age, and goals
Technology-Driven
Using Odoo, QuickBooks, and ProConnect, we streamline accounting and tax reporting
Local + National Reach
Based in Texas, proudly serving Houston, Katy, and clients nationwide
Ready to Invest Smarter?
Every property is different. Every investor is different. The tax strategy should be too.
Frequently Asked Questions
A: An LLC can provide liability protection and flexibility for multiple owners. But there are trade-offs with financing and filing requirements. We help you decide what makes sense for you.
A: Yes, but it’s not always simple. Withdrawals may trigger penalties, and self-directed accounts have strict rules. We review your situation to find the best path.
A: Schedule E usually applies to passive rentals, while Schedule C applies to active businesses (like Airbnbs or realtors). The wrong choice could cost you more in taxes — we make sure you file correctly.
A: Buildings depreciate over 27.5 or 39 years, but many items (appliances, flooring, HVAC, landscaping) qualify for shorter write-offs. We classify costs properly to maximize deductions.
A:A 1031 exchange lets you defer capital gains by reinvesting into another property. Strict 45-day/180-day deadlines apply, and a Qualified Intermediary must handle proceeds. We guide you through the process.
A: Joint ownership can work, but many choose an LLC or partnership for clarity and liability protection. We guide you through the pros and cons.
A: Sometimes. If you qualify as a Real Estate Professional under IRS rules, losses can offset wages. Otherwise, they’re considered passive and limited. We help determine what applies to you.
Ready to Invest Smarter?
Every property is different. Every investor is different. The tax strategy should be too.