{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “How does California’s Prop 13 affect real estate investment strategy?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Prop 13’s 2% annual cap on property tax increases is one of the most valuable features of California real estate ownership. A Carson property purchased in 2000 for $300,000 has a current assessed value of approximately $440,000 — while the market value might be $1.5M+. This $1M+ gap in assessed vs. market value represents a permanent tax advantage for the long-term owner. KDA’s Carson team incorporates Prop 13 analysis into portfolio planning — identifying which properties to hold long-term for maximum Prop 13 benefit and which to exchange.”
}
}, {
“@type”: “Question”,
“name”: “How does the One Big Beautiful Bill Act affect real estate investors in 2026?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The OBBBA’s permanent 100% bonus depreciation is the biggest win for Carson real estate investors in years. Previously, investors were racing to do cost segregation studies before bonus depreciation phased down. Now it’s permanent — you can take 100% first-year deductions on qualifying short-life assets indefinitely. Combined with the permanent QBI deduction and permanent TCJA rate structure, the OBBBA creates a stable, investor-friendly tax environment. KDA’s Carson team will show you exactly how to deploy these provisions in your 2026 tax strategy.”
}
}, {
“@type”: “Question”,
“name”: “Can I group my rental properties to maximize tax deductions?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Rental property grouping is one of the most underutilized strategies in real estate tax planning. By grouping your rental activities, you can meet material participation tests more easily (aggregating hours across properties), potentially qualify for the STR loophole across a portfolio of STRs, and simplify your passive activity accounting. The election must be made correctly and documented properly. KDA’s Carson team will evaluate whether grouping benefits your specific portfolio and execute the election correctly.”
}
}, {
“@type”: “Question”,
“name”: “How do I pay my children through my real estate business to shift income?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Paying your children for legitimate work in your real estate business is a legal income-shifting strategy that can save significant taxes. If your child is under 18 and you operate as a sole proprietorship or single-member LLC (not a corporation), their wages are exempt from FICA tax. Their wages are deductible to you at your marginal rate and taxed to them at their lower rate (often 0–10%). For a Carson investor in the 37% bracket paying a child $14,600 (the 2026 standard deduction), the tax savings are approximately $5,400. The work must be legitimate and the pay must be reasonable. KDA’s team will structure this strategy correctly.”
}
}, {
“@type”: “Question”,
“name”: “What is a 1031 exchange and how can a CPA help me use it?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A 1031 exchange (named after IRC Section 1031) allows real estate investors to sell an investment property and defer all capital gains taxes and depreciation recapture by reinvesting the proceeds into a like-kind replacement property. There is no limit on how many times you can exchange, meaning you can defer taxes indefinitely and build wealth on a pre-tax basis. KDA’s Carson real estate CPA team plans 1031 exchanges from the moment you acquire a property — not just when you’re ready to sell — to ensure you maximize the tax deferral.”
}
}, {
“@type”: “Question”,
“name”: “What is a ground lease and how is it taxed?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “For Carson investors with highly appreciated land, a ground lease is a powerful alternative to selling. Instead of triggering capital gains on the land sale, you lease the land for 50–100 years, receiving annual rent payments taxed as ordinary income. The land remains in your estate and passes to heirs with a stepped-up basis. The tenant builds and depreciates improvements on your land. KDA’s Carson real estate CPA team will model the after-tax comparison between selling the land outright and entering a ground lease arrangement.”
}
}, {
“@type”: “Question”,
“name”: “What is the tax treatment of real estate options?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate options are a sophisticated tool for Carson investors that require careful tax planning. For the option holder: the premium is added to basis if exercised (no current deduction), or becomes a capital loss if the option lapses. For the option grantor: the premium is deferred until the option is exercised or lapses. If the option is exercised, the premium is added to the sale proceeds. If it lapses, the premium is recognized as income in the year of lapse. The character of the income (ordinary vs. capital) depends on whether the grantor is a dealer or investor. KDA’s team will structure your option transactions to achieve the optimal tax outcome.”
}
}, {
“@type”: “Question”,
“name”: “What expenses can I deduct for my Airbnb or short-term rental property?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Beyond the standard rental deductions, Carson STR owners can maximize deductions through: (1) cost segregation study to accelerate depreciation on building components and furnishings; (2) 100% bonus depreciation on all personal property (furniture, appliances, electronics) placed in service in 2026; (3) home office deduction for the space used to manage your STR; (4) vehicle mileage for property visits and supply runs; and (5) education expenses for STR-related courses and conferences. KDA’s comprehensive deduction review typically finds $5,000–$20,000 in additional deductions for STR owners.”
}
}, {
“@type”: “Question”,
“name”: “What is the Section 121 exclusion and can I use it for investment property?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Section 121 is the primary residence exclusion — not an investment property tool. But for Carson investors, there is a strategic opportunity: convert an investment property to your primary residence, live there for 2+ years, and then sell with up to $500,000 in tax-free gains. The catch: depreciation recapture is not excluded (it’s taxed at 25%), and gains attributable to periods of non-qualified use (when it was a rental) are not excluded. KDA’s team will model whether a primary residence conversion makes sense for your specific property.”
}
}, {
“@type”: “Question”,
“name”: “What is Proposition 19 and how does it affect real estate investors in California?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Prop 19’s impact on Carson real estate investors is significant. If you own rental properties with low Prop 13 assessed values and plan to pass them to your children, those properties will be reassessed at current market value upon transfer — potentially tripling or quadrupling annual property taxes. Mitigation strategies include: (1) transferring properties before death via irrevocable trusts; (2) using LLCs with gifted interests; or (3) selling and doing a 1031 exchange into properties with higher assessed values. KDA’s Carson team will model the Prop 19 impact on your estate plan.”
}
}
]
}