Depreciation schedules, passive activity loss rules, and 1031 exchange coordination for real estate investors and agents, tracked property by property, not blended into one number.
Real estate carries some of the most consequential tax rules in the entire tax code, depreciation schedules that shape your return for decades, passive activity loss limitations that can trap deductions you cannot use yet, and 1031 exchanges that must be executed exactly right or the entire tax deferral collapses. Hasco Tax Advisors works with rental property owners, real estate investors, and licensed agents, handling the property-level detail that a general practice return often misses.
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. We set up depreciation correctly from acquisition, including proper allocation between land (not depreciable) and the building itself.
Rental losses are generally considered passive and can only offset passive income, unless you qualify as a real estate professional under IRS rules, which has specific hour and material participation requirements. Many investors assume their rental losses reduce their W-2 income and are surprised when the loss is suspended instead. We review whether you qualify for the real estate professional exception or the $25,000 active participation allowance.
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 are strict, 45 days to identify a replacement property and 180 days to close. Missing either deadline by even one day disqualifies the entire exchange. We coordinate with your qualified intermediary to keep the timeline on track.
When you sell a property, depreciation you claimed over the years is "recaptured" and taxed differently from the rest of your gain, at a rate up to 25%. This is frequently underestimated when investors plan a sale, and we model it out before you close, not after.
Income and expenses are tracked separately for each property, so you know exactly which properties are performing and which are dragging on returns.
Depreciation is calculated and tracked correctly for each asset, with schedules maintained across the full recovery period, not recalculated from scratch each year.
Mortgage payments are correctly split between interest, principal, and escrow, only the interest portion is deductible, and this is tracked precisely, not estimated.
Many investors hold properties across multiple LLCs. Books and returns are coordinated across every entity so intercompany transactions and management fees reconcile correctly.
Join the individuals and business owners who trust Hasco Tax Advisors with their most important financial decisions. Your first consultation is completely free, and you will leave it with a clear, direct answer on what is needed and what it costs.