Summary of What This Blog Covers:
- Explains When Rental Property Owners Should Hire a CPA
This blog outlines five key indicators that it’s time to work with a certified public accountant, especially if you own multiple properties, are involved in a complex ownership structure, or manage short-term rentals like Airbnb or VRBO. - Breaks Down Tax Complexities That CPAs Can Simplify
From handling depreciation and tracking deductions to preparing rental-specific tax forms like Schedule E, Form 4562, and Form 1099-NEC, this blog shows how a CPA can reduce tax errors and improve IRS compliance. - Highlights the Risks of DIY Tax Filing for Property Investors
The blog shares common issues real estate investors face, such as misreporting rental income, overlooking passive activity loss rules, and missing FBAR filings for foreign holdings. All areas a CPA helps navigate with confidence. - Reinforces the Value of Working with an Experienced Real Estate CPA Firm
It emphasizes how partnering with Insogna CPA—a leading Austin-based firm with expertise in rental property taxation, QuickBooks Self-Employed integration, and multi-entity structuring—saves time, reduces stress, and maximizes tax savings.
So you’ve taken the plunge into real estate investing. Maybe you’ve got a condo in East Austin you’re renting out, or you’ve expanded to several properties across Texas. Wherever you are on your investment journey, rental real estate can be one of the best paths to long-term wealth. But when it comes to taxes—well, it’s not quite as passive as the income.
From tax preparation services to tracking expenses and reporting depreciation, rental property taxes can get complex quickly. That’s especially true when you manage multiple units, operate in different states, or use platforms like Airbnb and VRBO.
If you’re still trying to figure out if you need a professional to help with your taxes, here are five clear signs that it’s time to call in a certified public accountant (CPA) especially one with experience in real estate. At Insogna CPA, we’ve helped investors throughout Austin, Round Rock, and South Austin cut through the noise, capture every deduction, and stay IRS-compliant year-round.
Let’s dig in.
1. You Own Multiple Rental Properties and It’s Getting Hard to Keep Track
Managing the income and expenses for one property might be relatively straightforward. But add a second or third unit, and suddenly you’re juggling a spreadsheet jungle.
Each property comes with its own:
- Mortgage interest
- Property taxes
- Maintenance and repairs
- Depreciation schedules
- Local filing requirements if you own across different states
Now layer in short-term rentals through platforms like Airbnb, and you’ve got a whole other set of rules, forms (like Form 1099-K), and potential self-employment tax considerations.
What a CPA Does:
- Tracks income and expenses property by property
- Helps you establish accurate books using tools like QuickBooks Self-Employed
- Ensures you’re following rules around W9 tax form collection and 1099 NEC form filings for contractors and property managers
This isn’t just about tax prep. It’s about putting systems in place to manage your investments like a business. That’s what we do at Insogna CPA, your trusted Austin tax accountant with deep rental property expertise.
2. You’re in a Complex Ownership Structure (LLC, Partnership, Co-Owner, etc.)
If you hold your property jointly with a friend, spouse, or business partner or through an entity like an LLC or S Corporation, your tax situation just moved to the advanced level.
Ownership Scenarios That Complicate Filing:
- Partnerships requiring Form 1065 and K-1s
- S-Corps needing Form 2553 election and Form 1120S
- Co-owners splitting income and expenses unevenly
- LLCs registered in one state owning property in another (hello, foreign LLC filings)
Why It Matters:
When you’re dealing with pass-through income, income allocation, or multiple entities, the chances of missing deductions or filing incorrectly go up fast.
What We Do:
- Determine the best ownership structure based on your goals
- Prepare and file complex returns including Schedule E, Form 1065, Form 1120-S
- Coordinate with all stakeholders to ensure clear documentation and accurate filings
If you’re searching for a CPA firm in Austin, Texas that knows how to handle multi-entity real estate setups, we’re already speaking your language.
3. You’re Not Sure What You Can Deduct and You’re Leaving Money on the Table
Let’s face it. Deductions are one of the biggest tax perks of owning rental property. But knowing what you can write off, and how to do it properly, is a whole different story.
Common Deduction Questions We Hear:
- “Is that new roof a repair or an improvement?”
- “Can I deduct travel expenses when I visit my rental out of state?”
- “What about the property management software I subscribe to?”
Some Deductions You Might Be Missing:
- Property taxes and mortgage interest
- Repairs and maintenance
- Utilities (if you pay them)
- Advertising and tenant screening costs
- Business-related travel and mileage
- Home office expenses if you manage your rentals from home
- Depreciation of the structure and major improvements
Many investors also forget to issue Form 1099 NEC to contractors or they don’t collect a W9 form from vendors. Both are required for IRS compliance.
Our CPAs and tax preparers in Austin help you keep track of every deductible expense while staying compliant with IRS guidelines. We’ll even run projections so you can plan around quarterly payments using a self employment tax calculator, especially if you’re a self-employed landlord.
4. Depreciation Makes Your Head Spin (and You’re Not Alone)
Depreciation is hands-down one of the most valuable tax tools available to rental property owners. It’s what allows you to reduce your taxable rental income without actually spending money.
But calculating it? That’s another story.
What You Need to Know:
- Residential real estate is depreciated over 5 years
- Only the structure not the land is depreciable
- Capital improvements must be depreciated separately
- If you sell, you’ll face depreciation recapture, which could surprise you at tax time
What We Do:
- Calculate and track depreciation accurately
- File Form 4562 with your return and carry it over year after year
- Help you plan around depreciation when buying, improving, or selling properties
- Structure your investments for long-term tax deferral, including strategies like the 1031 exchange
This is where your generic tax preparation software or “tax pro near you” can fall short. At Insogna CPA, we dig into the details and give you the clarity you need.
5. You’re Worried About Compliance or You’ve Already Received an IRS Letter
The IRS doesn’t mess around with real estate income. And with the rise of short-term rentals and digital payment platforms, they’re keeping a closer eye than ever on unreported income and incorrect deductions.
IRS Issues Rental Owners Commonly Face:
- Misclassifying short-term rental income
- Failing to report income reported on Form 1099-K
- Missing 1099 NEC filings for contractors
- Misunderstanding passive activity loss limitations
- Not reporting foreign accounts for international property investors (requiring FBAR filing)
How We Keep You Compliant:
- Proactively issue and track 1099 forms
- File Schedule E correctly for long-term rentals or Schedule C for short-term rentals when applicable
- Represent you in front of the IRS if you’ve already received a letter or notice
- Provide support for international tax issues, including FBAR and non-resident income reporting
Our team of enrolled agents and tax accountants work hard to make sure you’re not just filing taxes, you’re protecting your investment.
Tax Forms and Tools We’ll Handle for You
Here’s a quick overview of what you can expect to use and how we manage it for you:
- Schedule E (Form 1040) – Report income and expenses for each property
- Form 1065 – For partnership-owned rental properties
- Form 1120-S – For S Corporation-owned rental businesses
- Form 1040-ES – Estimated tax payments
- Form 4562 – Depreciation
- Form 1099-NEC / 1099-K / 1099-C / 1099-R – Contractor and payment reporting
- Form W9 – To collect contractor information
- FBAR – For foreign rental bank accounts or property holdings
We streamline every form and filing deadline so you’re never caught off guard.
Why Work With Insogna CPA for Rental Property Tax Strategy
We’re not your average “tax preparer nearby” firm. We’re a team of experienced CPAs in Austin, Texas, deeply focused on helping real estate investors, rental property owners, and small businesses maximize their tax savings.
What Sets Us Apart:
- Certified CPAs, chartered public accountants, and enrolled agents on staff
- Deep experience in services accounting and multi-property financial management
- Trusted by landlords, flippers, and Airbnb hosts throughout Austin and across state lines
- Fully integrated with systems like QuickBooks Self-Employed, WaveApp, and FreshBooks
Whether you own one unit or manage an entire portfolio, Insogna CPA delivers clarity, confidence, and peace of mind.
Let’s Take the Stress Out of Rental Property Taxes
If rental property taxes are keeping you up at night or if you’re wondering whether you’re missing deductions, overpaying taxes, or inviting an IRS audit, it’s time to stop guessing.
Contact Insogna CPA today to schedule your rental tax strategy session. Whether you’re looking for a small business CPA in Austin, need help with self-employment tax planning, or want a partner to handle multi-state rental compliance, we’re here to help.
Because real estate should be rewarding, not risky. Let’s make your next tax season your best one yet.