Real Estate Agent Taxes
Expertise You Can Trust
We help you turn complex tax rules into clear strategies for more savings.
Between shifting tax laws, new IRS rules, and the unique deductions available to real estate professionals, it can be difficult to know what applies to you. Let alone how to use it to your advantage.
That’s Andrew Schachtner CPA can help. We specialize in helping Louisville real estate agents and investors uncover strategies that minimize your IRS liability and preserve cash flow. All while keeping you prepared for what’s ahead.
The Real Estate Tax Reality
Real estate professionals face struggles that most industries never touch:
Large, irregular commission checks that create uneven income and tax surprises.
The constant juggling act between rental income, mortgage interest, property improvements, and depreciation.
Knowing when to hold, sell, or exchange a property to minimize the tax hit.
The blurred lines between being an “investor” and qualifying as a real estate professional in the eyes of the IRS.
It’s no wonder we see so many Louisville agents and investors overpay. Because they don’t have the time or expertise to navigate these complexities.
And that’s money you could have reinvested into your next property, or used to stabilize cash flow in a slower season.
How We Help Real Estate Pros Cut Their Tax Bills
Here are some of the core areas where we help with real estate agent taxes:
Bonus Depreciation
We’ll help you maximize this opportunity to write off your next property purchase, equipment, or renovations.
Cost Segregation Studies
Accelerate your depreciation deductions so you free up capital for growth instead of waiting years to realize tax benefits.
1031 Exchanges
When it’s time to sell, we’ll guide you through deferring taxes legally by reinvesting into the right property.
Real Estate Professional Status
We’ll help you understand if you qualify, and if you do, unlock the ability to offset losses against your active income.
Stepped-Up Basis on Inherited Property
Protect your legacy and reduce the tax burden when property transitions to the next generation.
These strategies aren’t about “loopholes.” They’re about using tax law as it was intended, so your business thrives.
What Changes With a CPA Who Gets Real Estate
Our work with agents and investors goes beyond filing returns. We offer a complete approach to your financial picture:
Bookkeeping for Growth
Clean books that actually tell the story of your business, so you don’t make tax decisions based on outdated or inaccurate numbers.
Tax Planning
Year-round strategies (not just April 15th scrambling) designed to shrink your liability and take advantage of upcoming changes.
Services for Small Businesses
Payroll, entity structuring, financial analysis: everything that makes your real estate practice more profitable and efficient.
Tax Preparation
Accurate, timely filings that reflect all the deductions and credits you’re entitled to, without leaving red flags for the IRS.
When you bring us into your corner, you get more than compliance. You get foresight and a plan.
Ready to stop second-guessing your tax moves?
Let’s sit down and map out where you’re missing out on tax savings, and how to keep more of what your properties are earning.
FAQs: Investor and Real Estate Agent Taxes
What tax deductions can I claim as a real estate agent?
The IRS lets you deduct “ordinary and necessary” business expenses. And real estate has plenty of them. Marketing costs, continuing education, home office use, vehicle mileage for client meetings, and even business meals. The key here is keeping receipts, mileage logs, and records of business purpose. Without proper documentation, you’re just asking the IRS to disallow your deductions.
How does bonus depreciation benefit real estate investors?
Basically, instead of depreciating property improvements over years, bonus depreciation lets you write off qualifying costs immediately. Which means a significant cash flow boost in year one. It’s one of the most powerful tools in real estate tax planning.
What is a cost segregation study, and is it worth it for smaller investors?
Think of it as an engineering analysis that breaks down your building into components with shorter depreciation lives. Instead of depreciating everything over 27.5 or 39 years, you might depreciate carpeting over 5 years, lighting over 7 years, for example. The study typically pays for itself several times over.
What are the rules for a 1031 exchange?
You have 45 days to identify replacement properties and 180 days to close on them. And the IRS doesn’t give extensions. The properties must be “like-kind” (investment real estate for investment real estate), and you need a qualified intermediary to handle the funds. Miss a deadline or touch the money yourself, and you’ve blown the exchange. But get it right? You can defer capital gains taxes indefinitely.
How do I qualify as a real estate professional for tax purposes?
You to meet IRS time requirements: more than 750 hours annually in real estate activities AND more than half your working time in real estate. Plus, you have to materially participate in each rental activity. It’s not automatic just because you have a real estate license. But if you qualify, rental losses can offset your other income – potentially saving thousands in taxes.
Should I set up an LLC or S-Corp for my real estate business?
There’s no across-the-board answer. LLCs offer flexibility and simplicity. S-Corps can save on self-employment taxes but add payroll complexity. Your income level, liability concerns, and tax situation all factor in. What works for a $200K-a-year agent might be wrong for someone doing $2 million in volume. We can analyze your specific situation to determine what saves you the most money.
How can tax planning reduce surprises at filing time for real estate agents?
Real estate income is unpredictable. A lot of times, it’s big commission checks followed by dry spells. Without planning, you either overpay quarterly estimates or get hit with penalties and interest. We project your annual liability, adjust estimated payments throughout the year, and time equipment purchases or retirement contributions strategically. The goal is to eliminate both overpayments and underpayment penalties.
Let Us Help:
Ready to come in for an appointment?
Click here to schedule a time to meet with us. We will NOT make dealing with a tax professional as painful as it’s been in the past!