Tampa Bay continues to grow—solid rents, steady demand, and opportunities in STR (short-term) and LTR (long-term). With the right guidance from an Enrolled Agent (EA), you can structure your investments to pay less tax, protect assets, maximize cash flow, and build long-term wealth through smarter real estate strategies. At Henriquez, we help with real-estate bookkeeping, real-estate taxes, Controller/CFO, and IRS representation.

1) Choosing the Right Entity (and When to Switch)

Keep title in an LLC for liability protection and long-term wealth preservation. Consider a holding LLC if you manage multiple properties. Evaluate using an LLC electing S-Corp status for active income activities such as flips or management fees, and keep LTR/STR assets in separate passive entities to protect operations and build wealth efficiently.

2) Depreciation & Cost Segregation

Depreciation (27.5 years residential) and cost segregation studies accelerate deductions and boost long-term wealth building. Bonus depreciation can further accelerate savings for certain component assets, improving cash flow and increasing overall wealth efficiency.

3) 1031 Exchanges to Defer Gain

Sell and reinvest in like-kind property to defer capital gain and depreciation recapture. Key rules: identify within 45 days and close within 180 days using a qualified intermediary (QI).

4) Short-Term Rentals (STR) vs. Long-Term (LTR)

STRs may qualify as non-passive activity if you meet material participation tests; also review local licensing, occupancy/transient taxes, and HOA/municipal rules (Tampa/St. Pete/Pinellas).

5) Interest, Improvements & Repairs

Mortgage interest, property taxes, insurance, and repairs are generally deductible; capitalize improvements vs. deduct immediate repairs—document with photos and invoices.

6) Bookkeeping & Investor KPIs

Maintain property-level accounting, attach receipts, and reconcile monthly. KPIs: cash-on-cash, cap rate, NOI, DSCR, and budget vs. actual variance.

7) Florida & Local: Taxes and Licenses

Florida does not impose a state personal income tax, which can be a significant financial benefit for residents and business owners alike. However, it is important to be aware of other taxes and regulations that may apply, such as the sales and tourist development tax specifically relevant for short-term rentals (STR). Additionally, tangible personal property tax may be applicable in certain situations depending on the location. Beyond taxes, licensing and zoning requirements vary by each county and city, so it is essential to thoroughly research and comply with the specific rules and regulations that govern your area. Taking these factors into consideration will help ensure smooth operations and avoid any unexpected legal or financial issues.

Services for Tampa Investors

Real-estate tax returns & planning
Property-level bookkeeping & consolidation
Controller/CFO: cash flow, budgeting & financing
IRS notices, audits & strategies

We serve Tampa, St. Petersburg, Clearwater, Wesley Chapel, Zephyrhills, and the entire Tampa Bay area.

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FAQs

Is an LLC recommended for each property?

The decision largely depends on factors such as the level of risk involved, the available financing options, and the associated legal and accounting expenses. We carefully evaluate the overall structure and ongoing maintenance requirements to create a balanced approach that optimizes both protection and cost-effectiveness. This thorough assessment ensures that all aspects are considered to achieve the best possible outcome.

Can I use cost segregation on residential rentals?

Yes. We separate shorter-life components, typically those with a useful life ranging from 5 to 15 years, in order to accelerate the depreciation deductions. This process requires a thorough and supportable study as well as a detailed return on investment (ROI) analysis to justify the allocation and ensure compliance with regulations.

Can my STR be treated as non-passive?

Potentially, you may qualify if you meet the material participation tests and also adhere to the stay and amenity rules. We carefully verify each situation on a case-by-case basis to ensure all criteria are fully met.

Ready to Optimize Your Tampa Portfolio?

Get a comprehensive plan that covers entity selection, depreciation strategies, 1031 exchanges, short-term rentals (STR) versus long-term rentals (LTR), and cash flow management. Begin with a 30-minute consultation call to discuss your specific needs and goals in detail.