Hola Property Investors! I'm here to make your numbers dance

1. Book a call with me

Slide on over to my DMs on Instagram and grab a spot on my calendar. I promise to keep it real (estate) and fun

2. Let's talk about your situation

I don't want just to do your taxes. I want to understand your needs and goals to grow your real estate business. The more you come ready with your portfolio, the more we can grow together.

3. Goal set

I'll send an engagement letter outlining how I am going to enable you to meet your goals, personalized to your situation.

Her knowledge amazes me.

"Liz is an amazing person. If you are trying to do your taxes - do not look anywhere else !!! You’ve found the right spot!!! The service is on the highest level, she is very polite and her knowledge amazes me, will do it all for you and keep your headache away. Make sure to make your appointment in advance, she is becoming very busy :) will definitely recommend and I will return myself every year."

Melissa Hernandez

Extremely happy with how everything worked out.

"We reached out at the very last minute for help. Our business is very new so we were well outside of our comfort zone with our tax situation. Elizabeth responded very quickly to every question and made the entire process smooth and stress-free for us. My wife and I are extremely happy with how everything worked out and we will be using HB Tax Services every year from now on. I'll definitely be recommending them to everyone I know!"

Gustavo Dominguez

What is depreciation recapture, and how does it affect my taxes when I sell a property?

Depreciation recapture is the process where the IRS taxes the portion of your property’s sale price that represents the depreciation you claimed while owning it. It’s taxed as ordinary income, up to a maximum rate of 25%. Even if you didn’t claim depreciation, you’re still subject to this tax, so it’s important to plan accordingly.

Can I do a 1031 exchange to defer capital gains taxes on a rental property sale?

Yes, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds from a property sale into a “like-kind” property. The new property must be identified within 45 days and closed within 180 days. This strategy is beneficial for growing a real estate portfolio while deferring taxes, but strict rules apply, so planning is key.

Do I need an LLC to start investing in rental properties?

No, you don’t need an LLC to invest in rental properties, but many investors use LLCs to limit personal liability. LLCs can offer some protection in case of lawsuits, but they don’t automatically provide tax benefits.

What are the requirements to meet the STR loophole?

You need to have an average stay of 7 days or less and meet one of the material participation tests. The most common tests are 1) You participated for more than 500 hour. 2) You participated for more than 100 hours and no less than any other individual.

Can I deduct improvements on my rental property immediately?

No, property improvements must be capitalized and depreciated over time. However, certain items classified as “Qualified Improvement Property” (QIP) can be eligible for bonus depreciation, allowing you to deduct a significant portion in the first year. Regular repairs, on the other hand, may be fully deductible in the year incurred.

How can I offset rental income with passive losses?

Passive losses from rental activities can offset passive income, but they can’t offset active income (like wages) unless you’re a “Real Estate Professional” under IRS rules. To qualify, you must spend over 750 hours in real estate activities and pass the material participation test. Losses can then offset active income, reducing your overall tax liability.