Who this is for
You own a few rentals, a short-term rental, a small apartment building or a growing portfolio in the Charlotte area, and you want a CPA who understands property instead of one who just types numbers into a return. Maybe you are buying your next property, selling one, or sitting on a tax bill that seems too high for what you own.
We work with investors across Charlotte, Ballantyne, Matthews, Mint Hill, Pineville and Huntersville, down through Union County, and over the line in Fort Mill, Tega Cay, Indian Land and Rock Hill. Many of our clients also own property in other states, and we handle those returns too. The overview of how we serve this group is on our real estate investors page.
What a real estate accountant handles
Long term rentals and depreciation
Depreciation is what keeps a lot of rental profit off your tax return, but only if it is set up correctly. Residential buildings depreciate over 27.5 years and commercial buildings over 39, and land is never depreciated. We set up your schedules from the closing statement, catch improvements that should be capitalized, and fix missed depreciation with a Form 3115 change in accounting method, usually without amending old returns.
Short-term rentals
A property with an average guest stay of 7 days or less is not treated as a rental activity under the passive loss rules. If you also materially participate, the loss can offset wages or business income, without real estate professional status. The whole case rests on your hours log, so we help you set one up and check the 7 day average each year. Read the full rules in the short-term rental loophole, or see our short-term rental tax page.
Cost segregation
A cost segregation study breaks a building into 5, 7 and 15 year components, so more depreciation lands in the early years. With 100 percent bonus depreciation for property acquired after January 19, 2025, the first-year deduction can be large. It only helps now if the passive loss rules let you use it, and part of it can come back when you sell, so we model it before you pay for a study. More in cost segregation and bonus depreciation.
1031 exchanges
A 1031 exchange defers the tax when you sell investment property and buy like kind property. The 45 day and 180 day deadlines are strict, and you need a qualified intermediary before you close. We plan the exchange with your depreciation recapture and your long term goals in mind. Start with 1031 exchange basics.
Real estate professional status
If you or your spouse spend most of your working time in real estate, real estate professional status can make rental losses nonpassive. The hours rules are demanding and the IRS looks at them closely. See how a spouse's hours can count.
Entity setup for rentals
Most investors hold property in one or more LLCs for liability protection, and the LLC is usually ignored for income tax. An S corporation rarely helps for pure rental income, since rental income is not subject to self-employment tax. Lenders, insurance and how many properties you own matter more than people expect, so we sort out the structure before you buy, not after. Our LLC and S corp setup service covers formation and elections.
Outsourced accounting for property portfolios
Clean books are what make the tax work easy. Our outsourced accounting service keeps your books current every month, with income and expenses tracked by property. That means you can see which rentals actually make money, your lender package comes together in an afternoon, and your return is built from numbers we already reviewed during the year.
- Rent, deposits, repairs and management fees coded by property
- Repairs separated from improvements, so depreciation is right
- Mortgage interest, escrow and loan payoffs handled correctly
- Monthly reports and year round tax planning from the same team
Charlotte investors often file in more than one state
Rental income is taxed by the state where the property sits. If you live in Charlotte and own a rental in South Carolina, or an out-of-state short-term rental, you generally file a nonresident return in that state and a resident return at home, with a credit to avoid double tax. North Carolina also does not follow federal bonus depreciation, so a large cost segregation deduction on your federal return may need to be added back on your NC return and taken over later years. We plan for both. See NC and SC dual-state taxes, and for the filing side, tax preparation in Charlotte.
How it works
- Free discovery call. Thirty minutes on Google Meet with Sargis. We look at what you own, what you plan to buy or sell, and where your tax bill comes from.
- Clear scope and price. You get a written scope and price before any work begins.
- Books, planning and returns. We keep your books, plan ahead of each purchase or sale, and file your returns in every state you need.
We are in Waxhaw, about 20 miles south of uptown Charlotte, and work with investors virtually. Documents go through a secure portal and finished returns come with a recorded walkthrough. More about the firm on our Charlotte CPA page.
What clients say
“…extremely responsive and very knowledgeable about long term and short-term rental properties. I would definitely recommend him and look forward to working with him again next year!”
“Sargis did my complicated taxes! I really liked the video he made me.”
“Sargis is the exact reason why you hire a CPA to do your taxes versus filing yourself, you don't know what you don't know!”
Questions we get asked
What does a real estate accountant in Charlotte do?
A real estate accountant handles the tax and accounting work that is specific to property: depreciation schedules, passive loss rules, cost segregation, 1031 exchanges, short-term rental tax treatment, entity structure and property-level books. We do this as CPAs, so the planning and the return are done by the same people who see your numbers during the year.
Do I need a cost segregation study on my Charlotte rental?
It depends on the building's cost, how long you plan to hold it and whether you can use the loss this year. A study speeds up depreciation, but the deduction only helps now if the passive loss rules let you use it, and some of it can come back as income when you sell. We run the numbers on a free discovery call before you pay for a study.
How does a 1031 exchange work for a Charlotte investor?
A 1031 exchange lets you sell investment real estate and buy like kind property without paying tax on the gain right away. The 45 day identification and 180 day closing deadlines are strict, and you need a qualified intermediary before closing. The tax is deferred, not erased, so we plan the exchange alongside your depreciation and your exit.
Can a short-term rental loss offset my W-2 or business income?
Sometimes. A property with an average guest stay of 7 days or less is not a rental activity under the passive loss rules, so if you materially participate, the loss can be nonpassive. Most owners meet that with 500 hours, or more than 100 hours and more than anyone else. It comes down to an hours log kept as you go, which we help you set up.
Should I hold my rentals in an LLC or an S corporation?
Most owners hold rentals in one or more LLCs for liability protection, and the LLC is usually ignored for tax. An S corporation rarely helps for pure rental income, because rental income is not subject to self-employment tax, and it can create problems with refinancing and basis. Structure depends on your lender, your insurance and how many properties you own, so we map it out on the call.
Can you do the monthly books for my properties?
Yes. Our outsourced accounting service keeps your books current each month, with income and expenses tracked by property, so your tax return and your lender package come from clean numbers. You see a monthly report instead of waiting until tax season to find out where you stand.
I live in Charlotte but own property in South Carolina or another state. Do I file there too?
Usually yes. Rental income is taxed by the state where the property sits, so you generally file a nonresident return there and a resident return at home, with a credit to avoid double tax. We prepare the returns for every state you own in.
Do you have an office in Charlotte?
No. We are in Waxhaw, NC, about 20 miles south of uptown Charlotte, and we work with investors virtually. Discovery calls are on Google Meet and documents go through a secure portal, so you never need to make the drive.