Real Estate CPA Denver
Dimov Tax Services https://4223199.b-cdn.net/cpa-firm/bookkeeping-and-tax-services-in-denver.html operates a Denver based accounting firm that provides expert CPA support, tax audit representation, payroll processing, and international tax solutions for individuals and businesses. Located at 1700 Lincoln St, they serve clients throughout the Denver area.
Dimov Tax Specialists
1700 Lincoln St
Denver CO 80203
(833) 829-1120
Why You Need a Real Estate CPA in Denver
Denver’s real estate market has grown exponentially over the past decade. Whether you're managing long-term rentals, flipping properties, or navigating short-term https://cpa-denver-colorado.s3.us-east.cloud-object-storage.appdomain.cloud/cpa-firm/what-is-unethical-financial-behavior.html rental (STR) permits in neighborhoods like Five Points, LoHi, or Wash Park, a specialized real estate CPA is critical. Real estate investing isn’t just about buying low and selling high—it's also about navigating complex IRS rules, Colorado-specific regulations, and strategic tax planning that maximizes return and limits liability. That's where Dimov Tax Specialists come in.
What Does a Real Estate CPA Do?
A Certified Public Accountant specializing in real estate works with investors, landlords, and developers to handle everything from depreciation schedules to multi-state tax filings. Key services include:
- Schedule E Rental Reporting: Accurately documenting rental income and allowable expenses, including HOA fees, repairs, and depreciation.
- Cost Segregation: Breaking down property assets to accelerate depreciation and reduce taxable income via Form 4562 and potentially Form 3115.
- Section 199A QBI Deduction: Structuring real estate activities to qualify as a “qualified business” under IRS rules and maximize the 20% income deduction.
- 1031 Exchanges: Facilitating tax-deferred property swaps through properly structured like-kind exchanges, including coordination with qualified intermediaries.
- Short-Term Rental Tax Strategy: Navigating the IRS rules that determine whether income is Schedule C or Schedule E, based on services offered and rental duration.
- Capital Gains and Basis Tracking: Supporting accurate calculation of your adjusted basis and net investment income tax (NIIT) liability.
Denver-Specific Real Estate CPA Use Cases
Denver’s neighborhoods each bring different tax dynamics based on property type, zoning, and local law. Below are real-world examples:
- Five Points STR Landlord: After converting a Victorian home into a short-term rental, the owner faced permit complexity and nightly cap ordinances. Dimov structured depreciation, occupancy tax strategy, and short-term passive income rules.
- Wash Park Duplex Seller: Sold a multi-family property with significant appreciation. Dimov calculated long-term capital gains and advised on timing the sale to stay under the 3.8% NIIT threshold.
- LoHi AirBnB Investor: Needed to separate personal and business use of the property. Our team implemented an accountable plan for business expenses and correctly applied self-employment tax exclusions.
- Stapleton Landlord: Converted a rental into a primary residence to utilize the Section 121 exclusion. Dimov helped track usage, adjusted basis, and qualified gain exclusion rules.
Common Tax Forms and Strategies for Real Estate Investors
Audit Risk and Real Estate: What to Watch
Rental property owners are increasingly flagged by the IRS and the Colorado Department of Revenue for audit due to improper deductions or Schedule E inconsistencies. At Dimov Tax, we implement safeguards such as:
- Reviewing for red-flag expenses (excessive repairs or travel deductions)
- Properly categorizing capital vs. expense items
- Reconciling rent received via Venmo, PayPal, or 1099-Ks
- Ensuring passive loss limitations under Section 469 are applied correctly
If needed, Dimov will also file Form 2848 for IRS audit representation and handle all correspondence and documentation reviews directly with revenue agents.
Dimov Tax’s Real Estate CPA Expertise
Our Denver-based team doesn’t just handle numbers—we understand real estate strategy. Our services include:
- Multistate Rental Portfolios: We prepare composite filings and apportionment schedules across Colorado and other states.
- International Owners: For clients with foreign residency or ownership entities, we help with FIRPTA compliance and tax treaty structuring.
- Luxury Short-Term Rentals: For properties generating high-volume revenue, we plan for excise tax compliance, depreciation maximization, and STR business licensing support.
- LLC & S-Corp Structuring: Guidance on entity creation, liability shielding, and self-employment tax reduction where applicable.
Real Estate Tax Planning Scenarios in Denver
- Scenario 1: A DTC landlord wants to transition four long-term rentals into short-term listings. Dimov outlines the city’s STR permit laws, calculates excise tax liabilities, and adjusts depreciation strategies based on new asset use.
- Scenario 2: An investor in Highland has a 1031 exchange opportunity. Dimov confirms boot risk, timelines, and helps vet qualified intermediary language to maintain full IRS deferral eligibility.
- Scenario 3: A LoDo property owner refinanced and pulled equity. Dimov advises how cash-out refinancing affects adjusted basis and potential tax exposure at sale.
Why a General CPA Isn’t Enough
Real estate tax law intersects with IRS rules, municipal codes, and property law. A general CPA may not know how to:
- Depreciate bonus-eligible assets under the TCJA
- Qualify a landlord for QBI deductions
- Manage like-kind exchange deadlines and boot exposure
- Structure passive vs. active activity groupings to unlock suspended losses
At Dimov Tax, we build real estate-specific strategies tailored for investors, developers, and hybrid landlords in Denver’s evolving market.
Conclusion: Maximize Return and Minimize Risk with Dimov
Real estate offers incredible tax benefits—but only when leveraged properly. Whether you're an STR host in RiNo, a landlord with a portfolio in Stapleton, or selling your first flip in Capitol Hill, Dimov Tax Specialists can help you save thousands in taxes, avoid penalties, and sleep better during tax season. As your dedicated real estate CPA in Denver, we bring unmatched expertise in federal, state, and local regulations—so you can focus on growing your investment while we optimize the tax outcome.