As a real estate professional, you operate in one of the most tax-complex industries. With 2025 coming to a close, there’s still time to make moves that could significantly reduce your tax liability.
Here are strategies to discuss with your CPA now:
Section 179 and Bonus Depreciation
If you’ve invested in property improvements or equipment, you may be able to deduct those costs immediately under Section 179 or bonus depreciation rules.
Conduct a Cost Segregation Study
If you own commercial or multi-family property, this study can help you accelerate depreciation and reduce taxable income.
Track Passive vs. Active Income
Your ability to deduct real estate losses depends on your status as a Real Estate Professional under the IRS guidelines. Make sure your hours and activities are documented.
Harvest Capital Losses
Selling underperforming assets before year-end can offset gains, reducing your overall tax burden.
Plan Transaction Timing
Closing a sale in January instead of December might shift your tax liability to the next year, giving you more time to plan.
Smart tax strategy isn’t just about deductions—it’s about timing and alignment with your broader financial goals. Schedule a meeting with your CPA to map out your plan before the calendar flips.