Rental property taxation is not simply “income minus expenses.” Depreciation, basis, passive-activity rules, improvements, refinancing, exchanges, sales, and state issues can follow a property for years.
Depreciation records are long-term records
Ask how the professional classifies improvements and repairs, maintains depreciation schedules, and preserves information needed when property is sold.
Passive-loss rules can matter
Losses may be deductible, limited, or carried forward depending on participation, income, property type, and other facts. A professional should understand how the rental activity fits into the rest of your return.
Sales require historical accuracy
A sale can expose years of incorrect basis or depreciation tracking. Good records from the beginning reduce the cost and uncertainty of reconstructing history later.
Real-estate planning often occurs before closing
If a property may be sold, exchanged, converted, gifted, or transferred, discuss the tax consequences before documents are signed whenever possible.