Whether you hold long-term rentals, operate short-term rentals (STRs), or scale into multifamily & BRRRR, the right accountant keeps basis and depreciation tight, classifies activity correctly, and coordinates 1031s—so your portfolio stays compliant, lender-ready, and optimized for cash flow. At Henriquez Accounting & Tax Services, we pair a disciplined monthly close with quarterly tax planning, documentation, and year-end filings. Explore Bookkeeping, Tax Preparation, and Controller/CFO Advisory.

Depreciation REPS & STR 1031 Coordination

Clean books, accurate basis, and documented positions—month after month.

Where a Dedicated Accountant Adds the Most Value

• CapEx vs. repairs: written policy, thresholds, and support (photos/invoices) to defend treatment.
• Depreciation strategy: land/building allocation, component lives, additions, and Form 4562 tie-outs.
• STR vs. rental classification: average stay, services provided, and participation—facts that drive tax outcomes.
• REPS/material participation: tracking hours and roles; documentation to support positions.
• Basis & at-risk: contributions, loans, improvements, and suspended losses tracked cleanly.
• 1031 exchanges: timelines, QI coordination, adjusted basis roll-forward, and gain/boot analysis.
• Escrow & deposits: security deposits as liabilities; trust/escrow reconciliations (property managers).
• Sales/tourist tax: STR mapping and registrations where required.

The Investment Lifecycle (How We Keep Files Lender-Ready)

Acquire & Rehab

• Record purchase allocation (land vs. building); set placed-in-service dates.
• CapEx log with photos; distinguish initial repairs vs. improvements.
• Loan cost treatment and amortization schedules.

Operate

• Separate accounts by entity/property; strict bank rules and vendor memos.
• STR gross→net platform reconciliation via Merchant Clearing.
• Escrow/security deposits tracked and reconciled; owner statements (PMs).

Refi / Exchange / Sell

• Updated basis; depreciation recapture tracking; gain/boot support.
• 1031: identify/replacement timelines, QI coordination, and workpapers.
• Lender/buyer packs: T-12, rent roll, capex log, and reconciled statements.

STR-Specific

• Occupancy, ADR, RevPAR KPIs; cleaning fees/taxes separated correctly.
• Tourist/sales tax filings (where applicable) and marketplace facilitator rules.

Our Cadence (Month–Quarter–Year)

Monthly

• Reconcile operating, escrow/trust, and merchant accounts; clear Undeposited Funds & Merchant Clearing.
• Close with P&L, Balance Sheet, Cash Flow; update rent roll and T-12.
• Attach invoices/photos to capex; update depreciation additions.

Quarterly

• Tax projections & vouchers; REPS/participation log review; STR occupancy checks.
• KPI review: NOI, cap rate, cash-on-cash, DSCR, occupancy/ADR/RevPAR.
• Loan covenant and reserve planning; entity/comp reviews (if applicable).

Annually

• 1099-NEC/1099-MISC e-filing; fixed-asset roll-forward; Form 4562 schedules.
• Schedule E and business return coordination; year-ahead depreciation and entity planning.

KPIs We Track for Investors

• NOI, cap rate, and cash-on-cash returns.
• DSCR, LTV, and cash runway.
• Occupancy; STR: ADR and RevPAR.
• Capex to revenue and maintenance cost per unit/door.

Common (Costly) Mistakes We Fix

• Improvements expensed as repairs (or vice versa) without documentation.
• Land/building not separated; basis/at-risk not tracked → suspended loss confusion.
• STR platform deposits posted net (fees/taxes/tips buried) → distorted margins.
• Security deposits recorded as income; trust accounts unreconciled.
• No participation logs for REPS/STR tests; weak support for positions.

Pro Tip: Keep a living CapEx log (date, property, description, vendor, amount, photo). It pays off at refinance, sale, or cost-seg time.

Recommended Stack (Real Estate)

• Accounting: QuickBooks Online/Desktop; property tools like AppFolio, Buildium, or DoorLoop (as needed).
• Docs & receipts: Dext/Hubdoc with attachment discipline and retention policy.
• AP & spend: Bill.com or Ramp with vendor approvals and W-9 tracking.
• STR ops: Channel managers with detailed gross→net exports for accurate clearing-account posting.

What You’ll Get When You Work With Us

• Clean, reconciled books—every month—including escrow/trust where applicable.
• Basis tracking, depreciation schedules, and capex documentation ready for lenders and tax time.
• Quarterly tax projections and planning for REPS/STR considerations.
• Owner dashboard: NOI, DSCR, occupancy/ADR/RevPAR, and cash runway.
• Return prep coordination (Schedule E/business returns) and notice handling.

 Book a 30-Minute Consultation

FAQs

Do I qualify for Real Estate Professional Status (REPS)?

It’s fact-specific. We help track hours/roles and evaluate participation tests. If REPS doesn’t fit, other planning may apply (including STR rules).

How should I classify a short-term rental?

Classification hinges on average stay and services provided—and it can change tax treatment. We analyze facts and document the position.

When does a cost segregation study make sense?

When property size, hold period, and your tax position justify acceleration. We model cash-flow impact before engaging specialists.

Can you support a 1031 exchange?

Yes—timeline planning, QI coordination, basis roll-forward, and workpapers for gain/boot and depreciation recapture.

How do you handle security deposits and escrow?

Record deposits as liabilities, keep funds separate, and reconcile monthly (three-way for trust accounts).

Ready for investor-grade books that stand up to lenders and the IRS?

We’ll implement policies, track basis and depreciation, reconcile escrow, and deliver KPIs that drive decisions. Talk to an Enrolled Agent today. Schedule Consultation