Tax Planning & Preparation
Strategic Tax Solutions for Real Estate Professionals
At PM Realty Accounting, we understand that real estate professionals face unique tax challenges and opportunities. Our specialized tax planning and preparation services are designed to help you navigate the complex tax landscape of the real estate industry, maximize your deductions, and minimize your tax liability while ensuring full compliance with tax regulations.
Whether you're an independent agent, team leader, broker, or property manager, our tax experts have the industry-specific knowledge to optimize your tax position and help you build a stronger financial foundation for your real estate business.
Did You Know?
Real estate professionals have access to numerous industry-specific tax deductions that many general accountants miss.
Proactive Tax Planning
We believe that effective tax management happens year-round, not just during tax season. Our proactive tax planning services help you implement strategies throughout the year to optimize your tax position.
- Customized tax planning strategies for your specific real estate business model
- Mid-year and year-end tax projections and planning sessions
- Business structure optimization (Sole Proprietor, LLC, S-Corp)
- Strategic timing of income and expenses
- Retirement planning and tax-advantaged investment strategies
- Real estate investment tax planning
- Entity formation and restructuring guidance
- Multi-year tax planning for long-term optimization
Tax Preparation
Our comprehensive tax preparation services ensure accurate, timely filing while maximizing your eligible deductions and credits. We handle all aspects of tax preparation for real estate professionals.
- Individual and business tax return preparation
- Schedule C preparation for sole proprietors
- Partnership and S-Corporation returns
- Real estate investment tax reporting
- Prior year tax return review and amendment if needed
- Electronic filing and payment processing
- State and local tax return preparation
- Tax notice resolution and audit support
Quarterly Tax Management
For real estate professionals with commission-based income, managing quarterly estimated taxes is crucial to avoid penalties and manage cash flow effectively.
- Quarterly estimated tax calculations
- Payment scheduling and reminders
- Cash flow planning for tax payments
- Adjustment of estimates based on actual income
- Strategies to avoid underpayment penalties
- Quarterly tax projection updates
- State and local estimated tax management
Tax Compliance & Representation
We ensure your real estate business remains compliant with all tax regulations and provide representation in case of IRS inquiries or audits.
- IRS and state tax notice resolution
- Audit representation and support
- Tax compliance reviews
- 1099 preparation and filing
- Sales tax compliance for applicable real estate activities
- Trust account tax compliance
- Back tax resolution and payment planning
Frequently Asked Questions
How are real estate professionals taxed differently than other businesses?
Real estate professionals face unique tax situations including commission-based income (often reported on 1099 forms), specific deductions related to property marketing and showings, potential for home office deductions, extensive business mileage, and complex rules around independent contractor status. Additionally, brokers may have trust account requirements and team leaders may have both employee and independent contractor relationships to manage. Our specialized knowledge helps navigate these complexities.
Should I form an LLC or S-Corporation for my real estate business?
The optimal business structure depends on your specific situation, income level, and long-term goals. Generally, once your net income exceeds approximately $40,000-$50,000, an S-Corporation election may provide tax advantages through the ability to pay yourself a reasonable salary and take remaining profits as distributions (not subject to self-employment tax). However, this comes with additional compliance requirements and costs. We provide personalized analysis to determine the most advantageous structure for your situation.
How do I handle quarterly estimated taxes as a real estate agent?
As an independent contractor, you're responsible for making quarterly estimated tax payments if you expect to owe $1,000 or more in taxes. These payments are typically due on April 15, June 15, September 15, and January 15 of the following year. We help calculate these payments based on your projected income, track your payments, and adjust estimates as your income fluctuates throughout the year. This helps you avoid underpayment penalties while managing your cash flow effectively.
What documentation do I need to keep for tax purposes?
You should maintain detailed records of all business income and expenses, including receipts, invoices, bank statements, mileage logs, and documentation of the business purpose for expenses. For mixed-use items like cell phones or home offices, you should document the percentage of business use. We help our clients implement efficient record-keeping systems that make tax time easier while ensuring you have the documentation needed to support your deductions in case of an audit.
Ready to Reduce Your Tax Liability?
Let our team of specialized tax professionals help you implement strategies to minimize your taxes and maximize your deductions.
Schedule Your Consultation