Tax Season & Real Estate: What You Should Know This April
April isn't just about filing deadlines. It's one of the smartest times of year to take stock of your real estate assets and make sure you're not leaving money on the table. If you own a home, we always remind our clients to confirm their homestead exemption is on file with the county, as it can meaningfully reduce your property tax burden. For our investor clients, spring is actually a strategic window to initiate a 1031 exchange. Inventory is higher, making it much more manageable to identify a replacement property within the required 45-day window. Landlords, don't overlook deductions for mortgage interest, repairs, depreciation, and property management fees, all of which can significantly offset your rental income. And if you've been in your home for a few years, rising values may mean you're sitting on more equity than you realize, something worth exploring through a HELOC or cash-out refinance to fund renovations, your next investment, or other financial goals. Use this month as a nudge to connect with your CPA, and please don't hesitate to reach out if you have questions about how any of this ties into your next move.
- When you need to work on your credit. Maybe your credit score is just starting to recover, but you need more time to pay down debts for a couple of years. With rent-to-own, you could start investing in a home while you bring up your score.
- You’re close, but not quite ready to secure a mortgage. You might have a good job with a significantly bigger salary, but you haven’t been there long enough for a lender to consider it a stable source of income. Or maybe you’re self-employed and you’re still building a reliable track record. Rent-to-own allows time to build personal wealth and financial credibility while working toward your homeownership goals.
- When you know you’re going to buy when the lease expires. If you’re not ready to buy when the lease expires, then you will lose any rent credit, i.e. investment, you’ve put into the home.
