Tax and Bookkeeping Help for Real Estate Investors and Landlords
Owning rental property can build long-term wealth, but it also adds some of the most detailed rules in the tax code. Depreciation, passive loss limits, repairs versus improvements and the choice of entity all affect what you owe, and small mistakes can carry forward for years.
Raymond G. Kenney, CPA works directly with landlords and investors, from owners of a single rental to people building a growing portfolio. You work with Ray himself, and he helps you keep clean records, file accurate returns and plan ahead before you buy, sell or restructure.
Common Challenges and How Ray Helps
- Reporting rental income and expenses. Ray prepares Schedule E accurately and helps you capture the deductible expenses that come with owning rentals, like mortgage interest, property taxes, insurance, repairs and management costs.
- Depreciation. Residential rentals are generally depreciated over 27.5 years and commercial property over 39. Ray sets up and tracks depreciation correctly, including improvements, and can explain when a cost segregation study might be worth a look.
- Passive loss rules. Rental losses are often limited by the passive activity rules. Ray explains how the rules apply to you, including how active participation and real estate professional status work, and tracks any suspended losses from year to year.
- 1031 exchange basics. A like-kind exchange can defer gain when you sell investment real estate and buy a replacement, but the deadlines are strict. Ray helps you understand the rules before you sell and reports the exchange properly.
- Entity and LLC structure. Ray walks through the tax side of holding property personally, in an LLC or in a partnership, so you can make the choice with your attorney with the tax effects in mind.
- Tracking costs and keeping books. Ray can set up simple bookkeeping by property so income, expenses and improvements are organized all year, not pieced together in April.
Related Services
- Year-round tax planning: plan purchases, sales and timing before year-end
- Individual tax preparation: returns with Schedule E rental reporting
- Partnership and multi-member LLC returns: for properties held with partners
- Monthly bookkeeping: organized income and expenses by property
- Bookkeeping clean-up: when records have fallen behind
- QuickBooks setup and optimization: a chart of accounts built for rentals
- Tax resolution: help with IRS or New York State notices
Why Work With Ray
Ray is a licensed New York CPA in practice since 2015 and a member of the AICPA and the NYSSCPA. You deal with him directly, from your first call through filing, and he’ll explain things in plain language.
Work With Ray From Anywhere
Prefer to work remotely? Ray works with clients locally and remotely across the U.S. by phone, video and email. Work with Ray from anywhere.
Frequently Asked Questions
Can I deduct losses from my rental property?
Sometimes. Rental activity is generally treated as passive, so losses may be limited. There is a special allowance for owners who actively participate, but it phases out at higher incomes, and real estate professionals may be treated differently. Losses you can't use now are usually carried forward.
What is the difference between a repair and an improvement?
Repairs that keep a property in normal working condition are generally deductible in the year you pay them. Improvements that add value, extend the property's life or adapt it to a new use are generally capitalized and depreciated. Some safe harbors may allow smaller costs to be expensed.
How does a 1031 exchange work?
When you sell investment or business real estate and buy like-kind replacement property, you may be able to defer the gain. Generally you have 45 days to identify replacement property and 180 days to close, and a qualified intermediary must hold the sale proceeds. Talk with a CPA before you sell.
Get Started
Have questions about your situation? Talk with Ray. Monday–Friday, 9–5.