Tax & Accounting for Real Estate Investors
Sindland CPA works with real estate investors and developers across southwest Missouri, from owners of one rental to partnerships and builders who develop and sell. We prepare your returns, run cost segregation studies, clean up depreciation, and handle sales and exchanges under one roof. For decisions ahead of year-end, see Tax Planning.
What we help with
Cost segregation, start to finish. We run cost segregation studies through our office using specialized software and engineering cost data, including on properties you've owned for years, and handle the tax filing that goes with them. You work with one CPA, not a separate cost seg firm. Before recommending a study, we check whether you can actually use the deductions.
Real estate professional status. We help you find out whether you qualify, set up the time records the IRS expects, and decide whether to treat all of your rentals as one activity.
Missed depreciation. If depreciation was missed or done wrong on past returns, we can usually catch it up on this year's return instead of amending old ones.
Rental partnerships. We prepare partnership returns for rental LLCs with more than one owner and keep each owner's share of income and losses straight.
Missouri PTET. For rental partnerships and S corporations, we model Missouri's annual pass-through entity tax election as part of year-round tax planning.
Selling or exchanging. We compare a sale with a 1031 exchange, federal and Missouri, before you list the property.
Builders and developers. If you build and sell homes or develop land, we sort out which properties are taxed as investments and which as inventory, handle construction costs correctly, and plan sales and exchanges around the difference. If you also run the construction side, see Contractors & the Trades.
Frequently asked questions
What is a cost segregation study, and when does it make sense?
A cost segregation study splits a building's cost into components with shorter depreciation lives, which can move deductions into earlier years. Whether it makes sense depends on the property's depreciable basis, how long you plan to hold it, and whether the passive activity rules let you use the deductions now. We check those before recommending one.
Can I do a cost segregation study on a rental I bought years ago?
Often, yes. The depreciation you could have claimed in earlier years can generally be caught up on this year's return, usually without amending old returns.
I missed depreciation on my rental. Do I have to amend?
Not always. If the error appears on only one filed return, amending is generally an option. If it appears on two or more, the missed amount is generally caught up on this year's return instead. We look at your history and recommend the right route.
Who qualifies as a real estate professional for tax purposes?
A taxpayer must spend more than 750 hours and more than half of their working time during the year in real property businesses in which they materially participate. On a joint return, one spouse must meet both tests alone. Qualifying is the first step. For rental losses to offset other income, you also generally need to materially participate in the rentals, which is why many owners elect to treat all of their rentals as one activity. Good time records matter.
Am I an investor or a dealer if I build and sell?
It depends on why you hold each property and how you sell it. Property held for sale to customers, such as spec homes or subdivided lots, is generally dealer property: gains are ordinary income, often subject to self-employment tax, and it doesn't qualify for a 1031 exchange. Property held for rental or investment generally gets capital gain treatment. How often you sell, how much development you do, and how you market the property all matter, so we look at each property, not just the business as a whole.
Work with a local CPA
Our office is at 206 South 2nd Avenue in Ozark, just south of Springfield. We meet in person or remotely.
Book a consultation · ozzie@sindlandcpa.com · (417) 973-2659
This page provides general information, not tax advice for your specific situation. Tax results depend on your facts and on current law, and no particular outcome is guaranteed. Contact us to discuss your situation.