Mixed-use property — where you use part of the property personally and rent out the rest — requires careful allocation of income and expenses between personal and rental use. The rental portion generates deductible expenses (mortgage interest, property taxes, insurance, repairs, depreciation) proportional to the rental percentage. The personal portion is subject to the standard home mortgage interest and property tax deductions. For Buckeye investors with ADUs, house hacking, or vacation homes with rental use, the allocation rules are complex. KDA’s team will calculate the optimal allocation and maximize your rental deductions.

Airbnb sends a Form 1099-K if you receive more than $600 in payments (2026 threshold). Your income is reported on Schedule E for most STRs, with all allowable deductions netting against gross rental income. If your property qualifies for the STR loophole (average stay ≤7 days, material participation), net losses can offset your other income. KDA’s Buckeye team will ensure your Airbnb income is reported correctly, all deductions are captured, and your STR loophole eligibility is documented.

An installment sale is a powerful tax deferral tool when a 1031 exchange isn’t feasible. By carrying seller financing, you recognize gain proportionally as you receive payments — potentially over 5, 10, or even 20 years. This can dramatically reduce your effective tax rate on the sale. The risk is counterparty default — if the buyer stops paying, you’ve deferred the tax but lost the asset. KDA’s Buckeye team structures installment sales with appropriate security interests and models the tax impact under various payment scenarios.

The Net Investment Income Tax (NIIT) is a 3.8% surtax on investment income — including rental income and capital gains from real estate — for high-income taxpayers. It applies to the lesser of your net investment income or the amount by which your MAGI exceeds $200,000 (single) or $250,000 (married). For Buckeye real estate investors, NIIT can add $38,000 on a $1M capital gain. The primary strategies to avoid NIIT: qualify for REPS (rental income becomes non-passive, exempt from NIIT) or use the STR loophole (same result). KDA’s team will model your NIIT exposure and identify avoidance strategies.

DSTs are the ‘retirement vehicle’ of 1031 exchanges. You sell your active rental property, exchange into a DST, and receive passive income from institutional real estate without any landlord responsibilities. The DST qualifies as like-kind property under IRS Revenue Ruling 2004-86, so all capital gains and depreciation recapture are fully deferred. For Buckeye investors approaching retirement or simply wanting to exit active management, a DST exchange is one of the most powerful options available. KDA coordinates DST exchanges and can connect you with qualified DST sponsors.

Real estate crowdfunding investments for Buckeye investors generate K-1s showing your share of income, losses, depreciation, and other items. The passive activity rules apply — losses can only offset passive income unless you qualify for REPS. The depreciation benefits from crowdfunding investments can be significant, especially if the platform conducts cost segregation studies at the property level. KDA’s team will analyze your crowdfunding K-1s and maximize the tax benefits from your platform investments.

One rental property is the beginning of a real estate portfolio, and the decisions you make now — entity structure, depreciation elections, record-keeping — will compound over time. KDA’s Buckeye real estate CPA team helps single-property owners get it right from day one, so that when you scale to 5 or 10 properties, the tax infrastructure is already in place.

You should hire a real estate CPA the moment you own a rental property, are considering a 1031 exchange, have a short-term rental, or are planning to sell investment real estate. These are all events with major tax implications that require proactive planning. Waiting until tax season means missing opportunities that can only be captured during the tax year. KDA’s Buckeye team works with clients year-round, not just in April.

The at-risk rules (IRC Section 465) limit your deductible losses to the amount you have ‘at risk’ in the activity — generally your cash investment plus any recourse debt for which you are personally liable. For real estate, qualified nonrecourse financing (loans from commercial lenders secured by the property) is treated as at-risk, which is a special exception that makes real estate more favorable than other investments. Most Buckeye real estate investors are not limited by the at-risk rules because their mortgage debt qualifies as at-risk. KDA’s team will confirm your at-risk status and ensure your losses are fully deductible.

A 1031 exchange has two critical deadlines: (1) the 45-day identification period — you must identify potential replacement properties within 45 days of closing your relinquished property; and (2) the 180-day exchange period — you must close on the replacement property within 180 days of selling. Both deadlines are absolute — missing either one disqualifies the exchange and triggers full tax liability. KDA’s Buckeye team tracks these deadlines meticulously and coordinates with your qualified intermediary to ensure compliance.