Real Estate Investors — Maximize Your Deductions

As a real estate investor, you're likely juggling property management, financing, and long-term planning, but don’t forget your tax return. Making sure you're claiming all the deductions you're entitled to can significantly reduce your tax liability. From depreciation to travel expenses, smart planning goes a long way.

Top Deductions Real Estate Investors Shouldn’t Miss:

1. Depreciation

One of the biggest benefits of owning rental property is depreciation. Even if your property has increased in market value, the IRS allows you to deduct a portion of the building’s cost each year over 27.5 years (residential) or 39 years (commercial). If you're not tracking this properly, you're leaving money on the table.

2. Mortgage Interest

Interest on loans used to purchase or improve your rental property is fully deductible. Be sure you're including mortgage statements, HELOCs, or other financing tools used for improvements.

3. Repairs and Maintenance

Fixing a leaky faucet? Replacing a broken appliance? Repairs made to maintain the property (not improve it) are fully deductible in the year incurred.

4. Travel and Mileage

If you visit your property for inspections, repairs, or showings, your mileage can be deductible. Keep detailed records or use an app to track trips to ensure accuracy.

5. Property Management and Professional Fees

Do you pay a property manager or CPA? Their fees are deductible as business expenses. This includes legal advice, tax prep, or bookkeeping related to your real estate portfolio.

6. Cost Segregation (Advanced Strategy)

If you own multiple rental properties or large buildings, a cost segregation study could accelerate depreciation by breaking down your building into components (e.g., flooring, HVAC). Ask your CPA if this strategy is worth considering.

Work With a Real Estate-Savvy CPA

Holmes & Associates has deep experience working with real estate investors in Los Angeles and beyond. We understand the nuances of investment property deductions and can help you file on time, and strategically.

Looking to maximize your deductions? We're here to help, contact us today!

Best CPA for Real Estate Investors in Los Angeles: Why Holmes & Associates is Your Go-To Firm

Real estate investing comes with complex tax laws, financial planning challenges, and compliance requirements. Whether you’re a seasoned investor or just starting out, having the right CPA on your team can make all the difference. At Holmes & Associates, we specialize in helping real estate investors in Los Angeles navigate tax strategies, maximize deductions, and optimize their financial success. 

Why Real Estate Investors Need a Specialized CPA 

The real estate market in Los Angeles is competitive and constantly evolving. Investors must deal with tax planning, property depreciation, passive activity rules, and potential 1031 exchanges, areas where an experienced CPA can provide invaluable guidance. A general accountant may not have the industry-specific expertise to help you take advantage of every tax-saving opportunity, but at Holmes & Associates, we focus specifically on real estate accounting and taxation strategies. 

How We Help Real Estate Investors Maximize Profits 

At Holmes & Associates, we offer a full range of tax and accounting services tailored for real estate investors, property managers, developers, and REITs. 

Tax Planning & Compliance 

✔ Strategic tax planning to minimize liabilities and maximize deductions 
✔ Expertise in real estate professional tax status and passive activity loss rules 
✔ 1031 exchange planning to defer capital gains taxes 
✔ Cost segregation studies to accelerate depreciation benefits 

Accounting & Bookkeeping 

✔ Rental property income and expense tracking 
✔ Monthly, quarterly, and annual financial reporting 
✔ Cash flow analysis and forecasting for better investment decisions 
✔ QuickBooks setup and management for real estate businesses 

Entity Structuring & Advisory 

✔ Choosing the best business structure (LLC, S-Corp, Partnership, etc.) for tax advantages 
✔ Real estate partnership tax considerations and compliance 
✔ Understanding the tax implications of different entity structures 

Investment Consulting for Real Estate Portfolios 

✔ ROI analysis and profitability assessments for investment properties 
✔ Evaluating tax advantages for different real estate strategies 
✔ Guidance on real estate syndications, joint ventures, and property acquisitions 

What Sets Holmes & Associates Apart? 

Holmes & Associates has been helping Los Angeles real estate investors for over 30 years. Led by Larry Holmes, CPA, our firm understands the financial landscape of real estate investing. Our proactive approach ensures that investors are not just filing taxes but optimizing their portfolios for long-term success. 

We also offer a Free Tax Analysis and Consultation, where we review your tax returns, books, and financials to uncover potential tax savings and profit optimization strategies. 

Schedule a Free Tax Consultation Today 

If you’re looking for the best CPA for real estate investors in Los Angeles, Holmes & Associates is here to help. Our team specializes in real estate tax strategies, financial planning, and investment consulting to ensure you maximize your returns. 

Call us at 562.495.3331 to schedule a free tax consultation and start optimizing your real estate investments today!