Turning real estate tax complexity into long-term value.
Bottom Line
Material participation is powerful, but it doesn’ t automatically make long-term rentals nonpassive. For many taxpayers, the path to nonpassive treatment for long-term rentals runs through REP status plus material participation. Meanwhile, QBI and NIIT require separate analysis:
• QBI focuses on whether you have a qualified trade or business for Section 199A purposes.
• NIIT focuses on whether income is net investment income or excluded because it’ s derived in the ordinary course of a Section 162 trade or business and is nonpassive to you.
Here to Help
These tax rules can be complex, but you don’ t have to navigate them alone. Our real estate tax pros help businesses and individuals structure their approach to maximize savings and stay fully compliant
About Our Authors
BOB YATES, CPA
MANAGING PRINCIPAL. GREATER NASHVILLE REGION, DOEREN MAYHEW ADVISORS, LLC byates @ doeren. com
Bob leverages his 25-year public accounting background to strategically lead the firm’ s greater Nashville region. He also serves in the Real Estate Tax Consulting Group, delivering value-added solutions aimed at helping local businesses, and their owners, meet financial goals.
PAUL ELLIS, CPA
PRINCIPAL, DOEREN MAYHEW ADVISORS, LLC pellis @ doeren. com
With more than 30 years’ experience, Paul leads the firm’ s Real Estate Tax Consulting Group and focuses on tax compliance and planning for closely held businesses.
REAL ESTATE TAX CONSULTING
Turning real estate tax complexity into long-term value.
A successful real estate portfolio isn’ t built on property selection alone— it’ s built on strategy. That’ s where our dedicated Real Estate Tax Consulting Group comes in. They look beyond compliance with a forward-thinking tax strategy to create value throughout your real estate portfolio’ s lifecycle.
Key Service Offerings
• Short-term, long-term and owner-occupied rental tax planning
• Cost segregation studies
• Bonus depreciation acceleration
• Qualified opportunity zone investing
• Entity structuring
• State tax planning and compliance
• 1031 like-kind exchange consulting
• Change of accounting method
• Rental real estate professional designation consulting
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