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Getting Ready for Tax Season 2025: Key Updates, Essential Tips, and BOI Reporting Delays

by
Alice Kaneyia
on
12/29/2024
Getting Ready for Tax Season 2025: Key Updates, Essential Tips, and BOI Reporting Delays

The new year is upon us, and for real estate professionals, it’s the perfect time to start preparing for the 2025 tax season. Proactive planning ensures compliance with the latest regulations, reduces filing stress, and helps maximize tax savings.

At Gold Accounting Tax, we specialize in guiding real estate investors, property managers, and businesses through the complexities of tax laws. In this blog, we’ll cover critical updates for the 2025 tax filing season, essential tips to prepare, and the latest developments on Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

Key Tax Updates for 2025

1. Adjusted Tax Brackets and Standard Deductions

The IRS has increased the standard deduction for the 2024 tax year to:

• $13,850 for single filers.

• $27,700 for married couples filing jointly.

Additionally, inflation-adjusted tax brackets may influence how much you owe or how refunds are calculated. Make sure to consult your CPA to understand how these changes impact your filing strategy.

2. Bonus Depreciation Phaseout

The phaseout of 100% bonus depreciation continues in 2024, dropping to 80%. This impacts real estate professionals who plan to expense qualifying property improvements or purchases. Adjust your asset acquisition and depreciation strategies accordingly.

3. Energy-Efficient Tax Credits

The federal government continues to incentivize green improvements. Key credits include:

• Energy Efficient Home Improvement Credit: Covering upgrades like windows, doors, and HVAC systems.

• Residential Clean Energy Credit: For installing renewable energy systems, such as solar panels.

If you’ve invested in energy-efficient upgrades in 2024, be sure to claim these credits to reduce your tax liability.

Essential Tax Filing Tips for Real Estate Professionals

Being prepared is the key to a smooth and successful tax filing season. Follow these tips to get started:

1. Organize Your Financial Records

Gather all essential documents, including:

• Rental income statements (e.g., 1099s).

• Property expense receipts (maintenance, utilities, insurance, and property taxes).

• Depreciation schedules for all assets.

2. Review Your Entity Structure

The type of business structure you use—whether an LLC, S-Corp, or partnership—can significantly impact your taxes. For example:

• LLCs provide flexibility but may have higher self-employment tax liabilities.

• S-Corps can reduce self-employment taxes through strategic salary and distribution planning.

Work with a real estate CPA to ensure your structure is optimized for tax efficiency.

3. Plan for Capital Gains Taxes

If you sold property in 2024, assess your capital gains taxes and explore strategies like:

• 1031 exchanges to defer taxes by reinvesting in new properties.

• Using capital losses to offset gains.

4. Leverage Tax-Advantaged Retirement Accounts

Consider contributing to SEP IRAs or solo 401(k)s, which offer substantial tax savings while building long-term wealth. These accounts are especially beneficial for self-employed real estate professionals.

BOI Reporting Delays Under the Corporate Transparency Act (CTA)

One of the most critical updates this season is the temporary halt to BOI reporting requirements.

On December 26, 2024, the 5th Circuit Court of Appeals reinstated a preliminary injunction, pausing the enforcement of BOI reporting by the Financial Crimes Enforcement Network (FinCEN).

What Does This Mean for Real Estate Businesses?

• Businesses such as LLCs, partnerships, and corporations are not required to file BOI reports until further court rulings.

• This pause preserves the legal status quo while the courts consider constitutional challenges to the CTA.

At Gold Accounting Tax, we’ll continue to monitor developments on this issue and provide timely updates to ensure you remain compliant when reporting requirements resume.

Why Choose Gold Accounting Tax?

Tax preparation for real estate professionals requires expertise, insight, and precision. At Gold Accounting Tax, we offer:

• Tailored Tax Strategies: We customize solutions to maximize deductions and minimize liabilities.

• Regulatory Expertise: Stay informed on changes like BOI reporting delays and evolving tax laws.

• Year-Round Support: Tax planning isn’t seasonal—we’re here to help you succeed every step of the way.

Start 2025 Right with Gold Accounting Tax

Don’t let tax season catch you off guard. Whether you’re a seasoned investor or just starting out, our expert team is here to simplify your tax filing process and unlock your financial potential.

Schedule a consultation today and let us help you navigate the 2025 tax season with confidence and clarity.

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Alice Kaneyia

Alice Kaneyia

CE0

Real Estate Accounting, Advisory & Tax Specialist With over 6 years of experience, I specialize in real estate accounting, advisory, and tax services. I provide accurate financial reporting, strategic advice, and meticulous tax preparation to help real estate professionals and businesses thrive. My client-centric approach focuses on personalized service, trust, and long-term success.

Gold Accounting Tax
3 reviews

Florida

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