Case Study

Assistance with Becoming a Real Estate Professional

situation

Client sought to become a real estate professional, but needed assistance in understanding the various requirements.

RESPONSE

We explained the process of becoming a real estate professional in detail, and then worked alongside the client to ensure they were in compliance.

We assisted with the appropriate documentation throughout the year and then made the proper elections on their return at the end of the year. We then created additional tax savings for the client by recommending a cost segregation study, which allowed for accelerated depreciation on their rental properties.

Outcome

Client was able to take full advantage of the tax savings associated with being a real estate professional, resulting in Year 1 tax savings of over $50,000.

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