Use these nine real estate planning topics to prepare a discussion with an Enrolled Agent or appropriately licensed CPA. Gather property records before considering deductions, sales or an exchange. This checklist is a starting point for reviewing your circumstances; eligibility and results depend on the applicable tax year and facts.
Table of Contents
1. Understand the Role of a Real Estate EA
An EA is a federally authorized tax practitioner. Ask about experience with rental properties, property sales and the returns you need. Discuss the scope of our business consulting before engaging a practitioner.
2. Choose the Right CPA Specializing in Real Estate
Verify the license and property experience of any CPA you hire. Henriquez Accounting provides business tax preparation; Pedro’s Dominican Republic CPA credential is separate from his U.S. EA credential and is not a U.S. CPA license.
3. Review depreciation records
Bring acquisition and closing documents, improvement invoices, prior depreciation schedules and business-use records. Bookkeeping support can organize these records for review; depreciation treatment requires a separate evaluation of the property and applicable rules.
4. Review records before selling
Before a sale, provide purchase records, selling costs, improvements and prior depreciation. Review the anticipated transaction with your adviser before committing to timing or terms. Our personal tax preparation engagement can identify the records needed for the return.
5. Discuss a proposed exchange early
Discuss a proposed exchange before signing or moving funds. Confirm required advisers, eligibility, deadlines and responsibilities; a bookkeeping or CFO engagement does not itself execute or qualify an exchange.
6. Review property assessments
Collect assessment notices and payment records. Ask the relevant local authority or qualified adviser about review procedures, deadlines and any exemption requirements. Confirm whether property assessment work is included in the consulting scope.
7. Document potential credit eligibility
Keep project invoices and supporting documents for any potential credit. Availability, qualification and timing need review for the tax year involved. Discuss these questions within the agreed tax preparation scope, without assuming every improvement creates a credit.
8. Organize Deductible Expenses Accurately
Separate records by property and distinguish operating expenses, financing, purchases and improvements. Reconcile accounts and retain receipts showing the purpose of each transaction. Our bookkeeping services can help maintain records; classification alone does not establish deductibility.
9. Stay Informed on Real Estate Tax Changes
Use rules for the filing year and transaction involved. Tell your adviser about changes in ownership, use, financing or location. Our business tax preparation services can review records within an agreed engagement.
Frequently Asked Questions
What makes a Real Estate Enrolled Agent different?
The EA credential establishes federal tax practice authority, not a separate real estate specialty. Ask about relevant experience and verify credentials using the IRS preparer credentials guide.
Do I need both an EA and a CPA?
Choose practitioners based on the work required. Tax preparation and IRS representation may fit an EA engagement; a lender’s audit or other assurance requirement may call for a properly licensed CPA firm. Confirm deliverables and avoid paying for overlapping work without a clear purpose.
How early should I engage an EA before selling?
Contact an adviser before making commitments. Share the proposed closing date, documents, ownership structure and questions about the transaction. Early discussion allows time to identify missing information and necessary specialist referrals; it does not guarantee a particular tax result.
Prepare for your real estate consultation
Henriquez Accounting & Tax Services offers bookkeeping, tax preparation, consulting and IRS representation within an agreed scope. Schedule a consultation with your property records and questions.