Real Estate Builds Wealth. The Right Tax Strategy Helps You Keep More of It.
Advanced Real Estate Tax Strategy
Buying real estate is only part of the investment strategy. How you acquire it, own it, depreciate it, operate it, and eventually sell it can have significant tax consequences. At Global Tax Service, our Real Estate Tax & Advisory services help investors, property owners, and entrepreneurs understand the tax side of their real estate decisions. We go beyond preparing a Schedule E. We look at the complete picture - your properties, income, depreciation, ownership structure, passive losses, future plans, and overall tax position to identify opportunities and potential tax exposure. Whether you own your first rental or are building a portfolio, your real estate deserves a tax strategy.
Buy. Own. Optimize. Sell.
We help you think about taxes at every stage.
Specialized Real Estate Tax Services
REPS Assessment
You Have Rental Losses. The Bigger Question Is Whether You Can Use Them.
Owning real estate does not automatically make someone a Real Estate Professional for federal income tax purposes.Specific requirements must be met, and documentation matters. Our Real Estate Professional Status Assessment evaluates your circumstances to help determine whether you may satisfy the applicable requirements and how the passive activity rules affect your real estate activities.
Our analysis may include:
• Nature of your real estate activities
• Time spent in real property trades or businesses
• Material participation
• Participation across multiple properties
• Spousal participation when applicable
• Other employment or business activities
• Recordkeeping and documentation
• Passive activity losses
• Suspended losses
• Property grouping considerations
For qualifying taxpayers, Real Estate Professional Status can significantly change how certain rental real estate losses are treated. However, the designation is highly fact-specific.
Our role is to evaluate the facts, not simply place a designation on a tax return.
$1,000
Cost Segregation Analysis/Study
Your Building Isn't Necessarily One Asset for Tax Purposes.
Cost segregation is a tax strategy that analyzes components of real property to determine whether certain assets may qualify for shorter depreciation recovery periods. Instead of depreciating qualifying building costs entirely over the standard recovery period applicable to the building, a cost segregation study may identify portions of the property that can be depreciated more quickly. Accelerating eligible depreciation can potentially create larger deductions earlier in the investment cycle and improve after-tax cash flow.
A COST SEGREGATION STUDY MAY BE APPROPRIATE IF YOU:
• Purchased investment real estate
• Constructed a building
• Completed a significant renovation
• Own commercial property
• Own residential rental property
• Own short-term rental property
• Own medical, office, retail, industrial, hospitality, or other income-producing property
• Purchased a property in a prior year but never completed a study
Already owned the property for several years? It may not be too late to evaluate your depreciation. Depending upon the circumstances, certain depreciation changes may be implemented through applicable accounting-method procedures rather than amending multiple prior-
year returns.
Starting at $1,500
Depreciation Recovery Review
You Bought the Property Years Ago. Did You Capture Everything?
Depreciation errors and missed opportunities can follow a property for years. Our Depreciation Recovery Review examines how your property has historically been depreciated and identifies items that may require correction or further analysis.
We may review:
• Original property basis
• Land allocation
• Building basis
• Capital improvements
• Prior depreciation
• Asset classifications
• Missing assets
• Incorrect recovery periods
• Potential cost segregation opportunities
• Prior-year depreciation schedules
When appropriate, we can determine whether an accounting method change or other corrective action should be considered.
$750+
Property Acquisition Tax Analysis
$750+
Before You Buy the Property, Understand What You're Buying From a Tax Perspective.
The purchase price isn't the only number that matters.
A real estate acquisition can affect depreciation, cash flow, entity structure, future
deductions, and ultimately what happens when you sell.
Our Property Acquisition Tax Analysis helps investors evaluate the tax implications of a
property acquisition.
Depending upon the engagement, we may analyze:
• Proposed ownership structure
• Property basis
• Land and building allocation
• Depreciation
• Potential cost segregation
• Planned renovations and improvements
• Rental use
• Short-term vs. long-term rental considerations
• Estimated tax impact
• Integration with your existing portfolio
• Exit considerations
Whenever possible, tax planning should happen before the transaction—not after the tax
return is due.
Property Sale & Exit Tax Analysis
The Sales Price Isn't What You Keep.
Selling a profitable property can create a significant tax event.
Before closing, you should understand what the transaction could mean for your taxes.
Our Property Sale & Exit Tax Analysis estimates the potential tax consequences of a
proposed sale so you can make decisions with better information.
Our analysis may consider:
• Adjusted tax basis
• Capital improvements
• Accumulated depreciation
• Depreciation recapture
• Estimated gain or loss
• Federal tax considerations
• Applicable state tax considerations
• Net Investment Income Tax considerations
• Suspended passive losses
• Estimated tax payment requirements
• Potential 1031 exchange considerations
• Timing and other planning opportunities
DON'T WAIT UNTIL AFTER CLOSING.
Once the transaction is complete, some planning opportunities may no longer be
available.
$750+
Advanced Real Estate Specialties
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Short-Term Rental (STR) Tax Strategy
Airbnb, VRBO, and other short-term rental activities can create tax considerations that differ from traditional long-term rentals. We evaluate the property's activity, average rental period, services provided, participation,
depreciation, and other relevant factors.
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Passive Activity Loss (PAL) Analysis
Have thousands of dollars in rental losses sitting on your tax return? We analyze current and suspended passive losses, participation, property dispositions, and other factors to determine when and how those losses may potentially become available.
Considering exchanging investment property? We help you understand the tax implications and coordinate the tax-planning side of a potential §1031 exchange. Qualified intermediaries and other professionals may be required to execute the actual exchange.
•
1031 Exchange Tax Planning
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Entity & Ownership Structure Review
An LLC does not automatically create a tax strategy. We evaluate how real estate is owned and taxed and whether the current structure aligns with the investor's broader tax and business objectives.
•
Basis & Capital Improvement Review
Purchase costs, improvements, depreciation, and other transactions can affect the adjusted basis of a property.
Maintaining accurate basis records becomes particularly important when calculating depreciation or preparing for a future sale.
Multiple properties require more than multiple Schedule Es. For growing investors, we analyze the portfolio as a whole to identify tax exposure, planning
opportunities, cash-flow considerations, depreciation strategies, acquisitions,
dispositions, and projected tax obligations.
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Real Estate Portfolio Tax Strategy
REAL ESTATE TAX STRATEGY THROUGHOUT THE INVESTMENT LIFE CYCLE
BUY
Start thinking about taxes before you close.
- Acquisition Tax Analysis
- Ownership Structure Review
- Initial Depreciation Planning
- Cost Segregation Evaluation
OWN
Operate with the tax consequences in mind.
- Rental Property Tax Planning
- REPS Assessment
- Short-Term Rental Strategy
- Passive Activity Analysis
- Tax Projections
OPTIMIZE
Look deeper than what's already appearing on the tax return.
- Cost Segregation Studies
- Depreciation Recovery
- Accounting Method Analysis
- Basis Review
- Portfolio Tax Strategy
SELL
Know the potential tax bill before you sign the closing documents.
- Property Sale Tax Analysis
- Depreciation Recapture Analysis
- Capital Gain Planning
- Suspended Loss Review
- 1031 Exchange Tax Planning
- Estimated Tax Planning
Real Estate Investing Is About More Than Buying Property
It's About What You Keep.
Real estate can be one of the most powerful wealth-building tools available, but tax strategy matters. Global Tax Service combines tax knowledge, accounting, and strategic advisory to help investors make informed decisions throughout the life cycle of their real estate. Don't wait until tax season to start thinking about your real estate taxes.
IMPORTANT INFORMATION
Global Tax Service provides tax and advisory services based on each client's individual facts and circumstances. Tax outcomes are not guaranteed. Eligibility for deductions, accelerated depreciation, Real Estate Professional Status, passive loss treatment, accounting method changes, §1031 treatment, and other tax strategies depends upon applicable law and the taxpayer's specific circumstances.
Certain real estate transactions may require coordination with attorneys, qualified intermediaries, engineers, appraisers, lenders, or other professionals. Global Tax Service does not provide legal advice, investment advice, property valuations, or engineering services unless specifically stated in a written engagement.