Hall CPA serves real estate investors, syndicators & sponsors, developers, agents & brokers, high-income earners, and business owners across the country.
United States of America
Joined April 2016
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The never-ending debate: real estate vs. stocks
Which is actually the better investment?
We created a full breakdown comparing the two using a four-benefit stack.
See what the numbers reveal.
Download the full Real Estate vs. Stocks guide now.
therealestatecpa.com/real-es…
This is the 'cost of taxes' that is the highest cost of every single deal.
And most of the time, it happens for one reason.
No exit strategy.
Because when you understand the tax code, real estate gives you several ways to legally reduce or even eliminate capital gains tax.
The biggest mistake investors make.
They think about taxes after the property is under contract.
By then…
Many strategies are already off the table.
The best tax outcomes happen when you plan the exit before you sell.
Sometimes months ahead.
Sometimes years.
Selling a property feels great.
Until the tax bill shows up.
Capital gains. Depreciation recapture. State taxes.
Add it all up, and some investors lose 30–40% of the profit. Gone.
Here are six mistakes we see:
1. You Never Materially Participated
REPS only gets you past the first test.
Your rentals don't become non-passive unless you materially participate in the rental activity.
6. Forgetting the Grouping Election
Without the grouping election, you're generally testing each property separately.
Meet the test on one property? Great.
The others may still be passive.
REPS can be one of the best tax strategies available to real estate investors.
But only if it's done correctly.
Often that requires help.
Reach out go.therealestatecpa.com/x
