TAX PLANNING THAT KEEPS YOUR MONEY INSIDE THE PORTFOLIO.
Real Estate
Accounting for property managers, investors, and real estate professionals. Every property reads on its own P&L. Depreciation is captured before you file. Reinvestment strategy replaces the drain-your-cash tax advice.
Real estate accounting runs on properties, not just companies. Each property is its own P&L, each entity is its own return, and each transaction has tax implications you do not want to surface in April. However, we set up the foundation so every property reads on its own, depreciation is captured correctly, and 1031 exchanges, cost segregation, and entity structure are planned for in advance rather than reverse-engineered later.
WHAT WE SET UP:
- Property-level P&Ls and entity-level rollups
- Depreciation schedules, cost segregation planning, and 1031 exchange support
- Multi-entity, multi-state filings, and K-1 preparation
- Software: QuickBooks Online or Xero, integrated with your property management platform
WHAT MAKES REAL ESTATE DIFFERENT
Four things generic accountants get wrong in real estate accounting.
Real estate is where most accountants either default to “drain your cash into an insurance product” or miss the reinvestment lever entirely. In reality, property-level accounting, depreciation strategy, 1031 exchanges, and multi-entity structures each need setup, not workarounds. Here’s what we build before your first close.
Property-level P&Ls
Every property should read its own income, expenses, and margin. So we set up the chart of accounts so operating properties, development projects, and short-term rentals each track separately, then roll up to the entity level cleanly for tax and reporting.
Depreciation & cost segregation
Straight-line versus cost segregation is a five- to six-figure decision on most properties. Therefore, we plan cost segregation before acquisitions when possible, coordinate with the engineer, and apply accelerated depreciation in the tax year that fits your income and reinvestment plan.
1031 exchanges & entity structure
1031 exchanges are only tax-deferred if the mechanics are right. Hence why we coordinate with your QI, set up replacement properties correctly, and structure entities (LLCs, series LLCs, partnerships, S-Corps) so K-1s and multi-state filings work at scale.
Reinvestment over extraction
The strongest tax strategy in real estate is not pulling cash out. It’s reinvesting the same dollars into your portfolio and earning depreciation and appreciation on them. As a result, we build the tax plan around reinvestment, not extraction.
CASE STUDIES
See what’s possible when the plan fits your industry
Every case study below is a real Prudent client, with the actual numbers we delivered. See what’s possible when your tax strategy is built around your industry, your entity structure, and your long-term goals, not a generic template.
LET’S TALK
Want a tax strategy that keeps keeps money inside your portfolio?
Book a 30-minute call with a Prudent real estate specialist. We’ll walk through your entity structure, your depreciation, and where the current tax plan is draining capital that could stay working.