Tax Tips | Tax Associates

Tax Tips

Plain-English guides on taxes, real estate, and running your finances — no jargon, no fluff.

Real Estate FAQ

Should I Put My Properties in an LLC?

A practical guide for real estate investors weighing whether to form an LLC for their rental properties — covering liability protection, tax implications, and when it actually makes sense.

Is Airbnb Income Passive or Active?

Most rental income is passive — but Airbnb is different. Here's how the IRS classifies short-term rental income, why it matters for your taxes, and what it means if you're losing money.

Real Estate Professional Status: What It Is and Why It Matters

Real estate professional status is one of the most powerful tax designations available to active investors. Here's what qualifies, how it unlocks rental losses, and what the IRS actually scrutinizes.

Real Estate Tax Strategy

How Does Depreciation Work on Rental Property?

Depreciation is the most powerful tax benefit in real estate — a deduction that costs you nothing out of pocket but can shelter thousands of dollars in income every year. Here's how it works, why it matters, and what happens when you sell.

How Should I Keep My Books as a Landlord?

Good bookkeeping is the foundation of every tax deduction you claim on a rental property. Here's what you actually need to track, the tools people use to do it, and an honest conversation about when it starts to become more than most landlords want to deal with.

Are Closing Costs Deductible for Real Estate Investors?

Closing costs don't fall into a single tax category — some are immediately deductible, some must be amortized over years, and others add to your basis. Here's how to sort through them correctly.

1031 Exchanges Explained: How Real Estate Investors Defer Tax Indefinitely

A 1031 like-kind exchange lets you sell a rental property and defer all capital gains and depreciation recapture by reinvesting in a new property. Here's how the rules actually work, what the timing looks like, and how differences in price and debt between properties are handled.

What Counts as a Repair vs. an Improvement for Rental Property?

Repairs are immediately deductible. Improvements must be capitalized and depreciated over years. The distinction matters enormously — and there are specific IRS rules, safe harbors, and a critical timing trap that every landlord should know.

Schedule E vs. Schedule C for Rentals and Airbnbs — When Does One Cross Into the Other?

Most rental income belongs on Schedule E. But some short-term rental operations — particularly those providing hotel-like services — cross into Schedule C territory. The difference carries significant tax consequences, including self-employment tax.

Is Cost Segregation Worth It for Rental Properties?

Cost segregation can dramatically accelerate depreciation deductions on rental property — but it costs money, has real tax implications on sale, and isn't right for every investor. Here's how to think about it.

What Happens When You Sell a Rental Property?

Selling a rental property triggers multiple layers of tax — capital gains, depreciation recapture, and potentially the net investment income tax. Here's how each works, what they actually cost, and how timing the sale can make a meaningful difference.

Why Real Estate Investors Often Outgrow Their CPA

A generalist CPA can handle most tax situations competently. But real estate investing has enough specialized tax law that the gap between a general practitioner and a specialist can quietly cost investors thousands of dollars a year.

Tax Planning

Common Tax Mistakes That Cost People Money

From missing deductions to trusting software that doesn't ask the right questions, here are the mistakes we see most often — and what they actually cost.

Should I Use TurboTax or a Tax Professional?

Honest advice on when DIY tax software is perfectly fine — and when sticking with it quietly costs you far more than a professional ever would.

Tax Basics

What Can I Deduct on My Taxes?

A plain-language guide to the deductions most taxpayers can actually use — and an honest look at the ones people commonly claim that are no longer allowed or never were.

Why Is My Tax Refund So Low This Year?

A smaller refund isn't necessarily bad news — but it does mean something changed. Here's what actually drives your refund, why it fluctuates, and what a refund really tells you about your finances.

What Documents Do I Need to File My Taxes?

A practical checklist of every document most filers need — including the ones people commonly forget — so you can walk into tax season prepared instead of scrambling.

What Is an Enrolled Agent — and Why Does It Matter Who Prepares Your Taxes?

Enrolled Agents are federally licensed tax professionals with unlimited representation rights before the IRS. Here's what sets them apart from ordinary tax preparers and why it matters for your return.