Industries
Tax and bookkeeping for real-estate investors
Keep property records clear and review tax consequences before buying, improving, refinancing or selling.
Report each property clearly
Track rent, operating expenses, improvements, financing and depreciation by property. Separate repairs from capital improvements and retain acquisition and closing records.
Rental activity is not one uniform category
Long-term rentals, short-term rentals, development, flipping and management services can have different treatment. Passive-activity rules and real-estate-professional status depend on the facts and supporting records.
Plan structure and exit together
An LLC’s legal form and tax classification are separate decisions. Holding appreciated property in an S corporation can create costs when property is distributed. Section 1031 eligibility and exchange structure require advance review; corporate ownership does not automatically prohibit every exchange.
Work with the right specialists
Coordinate legal ownership, financing, insurance, cost-segregation studies and exchange arrangements with the appropriate professionals. KDM’s accounting scope does not include legal advice or audit defense.