Master Real Estate Tax Strategy & Entity Planning
Strategic entity planning, permanent tax benefits, and state-specific optimization for smart real estate investors
TL;DR: Entity & Real Estate Tax Planning Essentials
- Potentially reduce tax liability through proper entity structuring (LLC vs S-Corp) and the permanent 20% QBI deduction
- 100% bonus depreciation is now permanent under OBBBA – maximize with cost segregation studies
- State-specific strategies for TX, CA, FL, NY, IL can reduce franchise taxes and property tax burdens
100% Bonus Depreciation
Permanently restored under OBBBA effective January 19, 2025
20% QBI Deduction
Now permanent with expanded thresholds and $400 minimum
Multi-State Expertise
Optimized strategies for TX, CA, FL, NY, and IL investors
Need expert guidance on implementing these strategies?
Learn about our specialized Real Estate CPA Services →How to Optimize Your Real Estate Tax Strategy
Follow this proven 5-step process to maximize your tax savings
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Analyze Your Current Entity Structure
Review your existing LLC, partnership, or sole proprietorship setup to identify optimization opportunities.
📊 Action: Use our Entity Analyzer tool or schedule a free consultation to evaluate your structure -
Calculate QBI Deduction Eligibility
Determine your qualification for the permanent 20% deduction based on income thresholds and property type.
🧮 Action: Access the QBI Calculator to estimate your deduction amount -
Implement Cost Segregation Study
Accelerate depreciation on 5, 7, and 15-year property components to maximize your 100% bonus depreciation.
🏗️ Action: Request a free cost segregation estimate for your properties -
Optimize State Tax Strategy
Structure your entities to minimize franchise taxes and leverage state-specific benefits.
🗺️ Action: Review our state tax guides for TX, CA, FL, NY, and IL -
Document and File Correctly
Ensure proper documentation for all deductions and elections to maintain compliance.
📋 Action: Download our tax documentation checklist and filing calendar
Entity Structure Planning
Choose the right structure to maximize tax benefits and protect your assets
LLC vs. S-Corporation Deep Dive
Make the right entity choice based on your income level, investment goals, and state requirements. Our comprehensive analysis helps you save thousands in unnecessary taxes.
- QBI deduction optimization strategies
- Self-employment tax planning
- State-specific entity recommendations
- Administrative burden comparison
Series LLC Asset Protection
Protect each property individually while maintaining streamlined management. Perfect for portfolios with multiple properties across different risk profiles.
- State formation strategies (DE, WY, NV)
- Liability isolation techniques
- Banking and financing solutions
- Cost-benefit analysis
Tax Planning Strategies
Leverage permanent tax benefits and proven strategies to minimize your liability
Bonus Depreciation Mastery
Maximize the permanently restored 100% bonus depreciation with advanced cost segregation strategies.
- Cost segregation implementation
- 5/15/39-year property classification
- Section 179 expanded to $2.5M
- State conformity planning
QBI Deduction Optimization
Secure your permanent 20% deduction with expanded thresholds and new minimum benefits.
- Expanded income thresholds
- $400 minimum deduction
- 250-hour safe harbor
- Entity impact analysis
1031 Exchange Planning
Defer capital gains indefinitely through strategic property exchanges and proper timing.
- 45-day identification rules
- 180-day completion requirements
- Qualified intermediary selection
- Depreciation recapture planning
Capital Gains Elimination
Legal strategies to minimize or eliminate capital gains tax on property sales.
- Primary residence exclusion
- Installment sale strategies
- Opportunity zone benefits
- Step-up basis planning
Short-Term Rental Benefits
Transform your STR into a powerful tax shelter with accelerated depreciation strategies.
- Material participation tests
- Accelerated depreciation
- W-2 offset strategies
- Record-keeping systems
Trust Property Taxation
Navigate complex trust taxation for rental properties and optimize distributions.
- Grantor vs. non-grantor trusts
- Schedule C flow-through
- K-1 distribution planning
- QBI qualification rules
State-Specific Resources
Navigate complex state requirements with confidence
Franchise Tax Navigation
Master franchise tax requirements across multiple states and minimize your liability.
- Texas margin tax (0.75%) strategies
- California $800 minimum planning
- Illinois 9.5% corporate tax mitigation
- New York variable tax optimization
Veteran Property Benefits
Maximize property tax exemptions available to veterans across all 50 states.
- 100% exemption in 20 states
- Disability rating requirements
- Application procedures
- Surviving spouse benefits
Tax Planning Calculators
Professional tools to optimize your tax strategy
Transform Your Tax Strategy Today
Our CPAs specialize in real estate tax planning that could potentially reduce your tax liability
Frequently Asked Questions
Quick answers to common entity and tax planning questions
When should I switch from LLC to S-Corp?
Generally when your net income exceeds $60,000-80,000 annually. S-Corp election could potentially reduce self-employment taxes but requires additional compliance. Results vary based on individual circumstances.
Is the 20% QBI deduction really permanent now?
Yes, the OBBBA (One Big Beautiful Bill Act) made the QBI deduction permanent starting July 4, 2025, with expanded thresholds and a $400 minimum deduction.
Can I use bonus depreciation on used properties?
Yes, 100% bonus depreciation applies to both new and used properties as long as it’s your first use of the property. Cost segregation maximizes this benefit.
Which state is best for forming my LLC?
Delaware, Wyoming, and Nevada offer strong asset protection and tax benefits. However, you’ll still need to register in states where you own property.
How much can cost segregation save me?
Typically 20-30% of your property value can be accelerated, potentially creating significant first-year tax deductions. Results vary based on property type and individual circumstances.
Do STRs qualify for better tax treatment?
Yes, STRs with average stays under 7 days can qualify for material participation, allowing you to offset W-2 income with rental losses.
What’s the Texas franchise tax threshold?
Texas franchise tax applies when gross receipts exceed $1.23 million. The rate is 0.75% of margin, with various deductions available.
Can veterans get property tax exemptions?
Yes, 20 states offer 100% property tax exemptions for disabled veterans. Requirements vary by state and disability rating.
Benefits of Proper Tax Planning
Understanding the potential impact of strategic entity structuring
Free Resources & Downloads
Professional tools and guides to support your tax planning
QBI Documentation Checklist
Ensure compliance with the permanent 20% deduction requirements
Download PDFDepreciation Worksheet
Calculate savings through cost segregation and bonus depreciation
Download Excel