Small Business

With over five decades of real estate tax accounting experience, Robert Hall & Associates has become a leader in the Glendale, Preparation Burbank, and Pasadena real estate industries for tax preparation. The multi-faceted nature of Robert Hall & Associates allows our tax accounting firm to specialize in this industry on a micro-level. By concentrating on tax structuring for investors, real estate agents, brokers, developers, and property managers, Robert Hall & Associates can cater to the uniqueness of each division in order to ensure maximum tax efficiency.

We can help structure tax-efficient entities for various real estate activities, create a tax planning strategy that allows you to legally keep as much money as possible, and prepare your annual tax returns.

There are numerous tax advantages to owning real estate, particularly if you’re an investor seeking the long-term stability and growth potential that real estate provides. Some of the tax-related real estate situations that tax professionals can help with include:

• Depreciation: The wearing down of an asset over time is known as depreciation. It is a “paper loss”: You don’t actually spend money out of your pocket, however, you are still entitled to credit for the expense. This expense can offset taxable income and save money on your tax bill.
• Installment sales: Also known as seller financing or a seller carry-back mortgage, this is a method of reducing taxes on the sale of real estate. Installment sales are only available to property investors (not house flippers). They allow an investor to defer capital gains tax, but the entire amount of accumulated depreciation must be recaptured at the initial time of sale.
• Section 1031 tax-free exchange: A 1031 exchange allows you to trade one property for another without paying taxes. You must follow specific rules, and you must be classified as an investor (not a dealer who flips houses). In return, you get to use 100% of the profits from the sale to reinvest in the next property. This maximizes the growth and compounding of your investments.
• Live-In Flip: A handy method of avoiding capital gains tax is to use a strategy called the “Live-In Flip.” Buy and immediately move into a property as your principal residence; as long as you live in the home for two out of the next five years, you can personally earn an annual tax-free profit of up to $250,000 as an individual or $500,000 as a couple.