Depreciation, 1031 exchanges, commission income, and owner trust accounting, whichever side of real estate you're on.
Real estate covers a wide range of very different businesses under one label: licensed agents earning 1099 commission income, investors holding rental property for the long term, and property managers collecting and disbursing other people's money at scale. Hasco Tax Advisors works with all three, agents, investors, and property managers, handling the specific tax rules and bookkeeping structures each one actually needs.
Residential rental property is depreciated over 27.5 years, commercial property over 39 years, and getting the depreciable basis wrong in year one carries that error forward for the entire schedule. Rental losses are generally passive and can only offset passive income, unless you qualify as a real estate professional or the $25,000 active participation allowance applies.
A 1031 exchange lets you defer capital gains tax by rolling proceeds from a sold property into a new one, but the identification and closing deadlines, 45 days to identify, 180 days to close, are strict. Missing either deadline by even one day disqualifies the entire exchange.
Licensed agents typically operate as independent contractors with 1099 income from their brokerage, and have their own set of deductions, vehicle mileage, marketing costs, MLS and association fees, and home office, that a generalist return often misses.
A property management company collects rent on behalf of owners, deducts its management fee, and disburses the remainder. The fee is the management company's taxable revenue; the rent collected on the owner's behalf is not. Security deposits also generally must be held in a separate trust account under state law, distinct from both owner funds and operating funds.
For investors, income and expenses tracked separately by property, so you know exactly which properties are performing.
For agents, 1099 commission income and business deductions tracked correctly for accurate quarterly estimated taxes.
For property managers, rent collected on behalf of owners tracked separately from management fees and security deposits.
For investors holding property across multiple LLCs, books and returns coordinated across every entity.
Agents, investors, and property managers, we handle the depreciation, exchanges, and trust accounting specific to your side of the business.