8 Tax Strategies Every Real Estate Professional Should Know

As a real estate professional, you work hard to build wealth and maximize your investments. But are you leveraging the best tax strategies to keep more of your earnings? At Visibility CFO & Tax Advisors, we help real estate agents, investors, and brokers implement smart tax planning strategies that minimize liability and maximize savings.

Here are eight key tax strategies you should consider:

1. Choose the Right Entity Structure

Your business structure affects both your legal and tax liability. Many real estate professionals benefit from an LLC, S-Corp, or even a combination structure to optimize self-employment taxes and protect personal assets.

2. Implement an Accountable Plan

If you operate an S-Corp, an accountable plan allows you to deduct certain qualifying business expenses—such as mileage, home office costs, and meals—without increasing taxable income. This strategy helps ensure you’re reimbursed for legitimate expenses while keeping taxes low.

3. Maximize the Qualified Business Income (QBI) Deduction (aka Section 199A Deduction)

Eligible real estate professionals can claim the QBI deduction, allowing you to deduct up to 20% of qualified business income. This is especially beneficial for real estate agents and property managers who meet IRS-defined real estate trade or business requirements. To learn more about QBI Deduction, read here.

4. Utilize Section 179 & Bonus Depreciation

When you purchase real estate, you can accelerate deductions through Section 179 expensing and bonus depreciation, particularly when you conduct a cost segregation study. This strategy allows you to write off certain building components (e.g., appliances, carpeting, lighting) in the year of purchase instead of depreciating over decades. To learn more about accelerated depreciation read here.

5. Take Advantage of the 1031 Exchange

A 1031 exchange lets you defer capital gains taxes when you sell an investment property and reinvest the proceeds into another qualifying property. This strategy helps investors grow wealth without taking a tax hit on each sale.

6. Deduct Real Estate Professional Expenses

Many common expenses—including marketing, education, licensing fees, travel, and home office costs—are deductible. Keeping detailed records ensures you maximize your write-offs each year.

7. Leverage Vehicle Depreciation

If you use a vehicle for business purposes, you may be able to deduct depreciation costs. Section 179 and bonus depreciation are not only for investment properties- they also allow you to write off a portion—or even the full cost—of a qualifying vehicle purchase, depending on the weight and usage of the vehicle. To learn more about Section 179 read here: https://www.visibilitycpa.com/insights/maximizing-tax-savings-with-section-179-a-must-know-for-small-businesses

8. Hire Your Family for Tax Savings

Hiring family members—such as your spouse or children—can help reduce overall tax liability. Wages paid to children under 18 are often exempt from payroll taxes, and your business benefits from additional deductible wages.

How We Can Help

Real estate professionals have powerful tax-saving opportunities, but they require strategic planning. By leveraging these eight tax strategies, you can significantly reduce your tax bill and keep more profits in your pocket.

At Visibility CFO & Tax Advisors, we specialize in helping real estate professionals implement these strategies effectively. Schedule a discovery call to learn how we can help you build wealth while optimizing your tax savings!