Tax season is a critical time of year for every real estate investor, so we want to go over a few things to make sure you are claiming all of the tax benefits real estate has to offer. Too often, we come to find out from investors that they didn’t maximize all of the tax benefits they could have. One of the best ways to avoid that is by not doing your taxes on your own. If you’re an experienced real estate investor, you already know that real estate tax law is extraordinarily complex. It will be well worth your time and money to hire a CPA to make sure you take advantage of all available deductions.
Also, not every CPA is skilled in real estate or business deductions. You need to find someone who has many investor clients and keeps current on all of the write-offs you can take advantage of. I have spoken to many investors who assumed their CPA understood real estate taxes, only to later realize that they’d missed out on major deductions. So when choosing a CPA, choose wisely and carefully.
Amira, our manager of investor relations, has fielded a lot of questions from our investors about their K1s, so we asked Eric, our CPA, put together a video on how to read your K1.