721 Exchange Real Estate: A Complete Accounting & Recordkeeping Guide
721 exchange real estate transactions involve a property owner contributing real estate to a partnership in return for a partnership interest. Under Section 721 of the Internal Revenue Code, gain or loss is generally not recognized when property is contributed to a partnership for an interest in that partnership, subject to important exceptions. The partnership […]
What Is TIC in Real Estate? How to Analyze Investment Returns & Cash Flow
If you are asking what is TIC in real estate, the short answer is that TIC means tenancy in common. It is a form of property ownership where two or more people own shares in the same property. Each owner may hold a different share, and the owners can share income, costs, gains, and other […]
Why Are Cost Allocation Methods Important in Construction Cost Accounting?
A construction project can bring in a large amount of revenue and still deliver less profit than expected. One reason may be hidden in the way project costs are tracked. Construction cost accounting helps contractors see where money is going, but if shared costs such as equipment, supervision, labor, or overhead are not assigned to […]
Financial planning for real estate: 7 proven ways to build strong cash reserves
Financial planning for real estate often looks simple until a property has its first bad month. Rent may be due, but a tenant may leave. A roof may leak just before insurance is due. A furnace may fail while the mortgage still needs to be paid. These events show why cash in the bank can […]
Real Estate Tax Consultant: Expert Guide to Services, Benefits & Choosing One
You buy a rental property for $450,000. A year later, you have collected rent, paid mortgage interest, repaired the roof, replaced appliances, paid property tax, and spent money on insurance and management. Now you are preparing your tax return. The obvious question is: How much tax do you owe? The better question is: Did you […]
How Does a Property Accountant Handle CAM Reconciliation? A Complete Guide
The CAM statement says $48,000. The tenant’s records show $43,500. Which number is right? That question is common when a commercial property reaches its year-end CAM reconciliation. The difference may not come from a simple math error. A repair may not be recoverable. A utility bill may cover both tenant space and common areas. The […]
How to Avoid Capital Gains on Real Estate
Selling a property for more than you paid for it sounds like a win—until the tax bill enters and does not tell you what you will owe. This is why how to avoid capital gains on real estate is important. A $200,000 profit does not always mean $200,000 is taxable, and the sale price alone […]
How a CPA for Real Estate Investors Can Help With Acquisition & Disposition Financial Analysis
A $2 million property can look like a strong deal on paper. The rent is high. The seller shows a good cap rate. The area has seen rising prices. The projected cash flow looks enough to cover the loan. But what if insurance costs rise by $20,000 a year? What if the roof needs $100,000 […]
Why Does a Real Estate Bookkeeper Need Accurate Commission Payout Tracking?
A real estate bookkeeper sees a $20,000 commission hit the brokerage account. At first, it looks simple. But the agent is due 70%; a transaction fee must be taken out, and the brokerage keeps the rest. Then the bank shows a payment that is $250 lower than the payout sheet. Now the question is: where […]
Best Real Estate Brokerage Accounting Software: Commission & Multi-Branch Comparison
Three deals close on the same Friday. The brokerage receives commission on all three. One agent has a 70/30 split. Another has reached a commission cap. The third deal includes a referral fee paid to another broker. At the same time, the New York branch has paid an expense for the Chicago office, while the […]
