{
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“@type”: “ProfessionalService”,
“name”: “KDA Inc. u2014 Real Estate CPA San Marcos”,
“description”: “Specialized real estate CPA services for San Marcos, California investors. Cost segregation, 1031 exchanges, REPS, STR loophole, and entity structuring.”,
“url”: “https://kdainc.com/real-estate-cpa-san-marcos-ca”,
“telephone”: “+1-800-KDA-TAXES”,
“areaServed”: {
“@type”: “City”,
“name”: “San Marcos”,
“containedInPlace”: {
“@type”: “State”,
“name”: “California”
},
“postalCode”: “92078”
},
“serviceType”: [
“Real Estate CPA”,
“Cost Segregation Analysis”,
“1031 Exchange Planning”,
“Real Estate Professional Status Qualification”,
“Short-Term Rental Tax Strategy”,
“Real Estate Entity Structuring”
],
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“name”: “Real Estate Tax Services”,
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“name”: “Cost Segregation Study”
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“itemOffered”: {
“@type”: “Service”,
“name”: “1031 Exchange Planning”
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“@type”: “Offer”,
“itemOffered”: {
“@type”: “Service”,
“name”: “REPS Qualification”
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“itemOffered”: {
“@type”: “Service”,
“name”: “STR Loophole Strategy”
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“Real Estate Tax Strategy”,
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{
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“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What is the 14-day rule for vacation rental properties?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The 14-day rule (also called the vacation home rule) applies when you use a rental property personally for more than 14 days OR more than 10% of the days it’s rented, whichever is greater. If you exceed this threshold, the property is classified as a ‘vacation home’ — deductions are limited to rental income (you cannot generate a loss), and the property may not qualify for the STR loophole. KDA’s San Marcos team tracks personal use days carefully for STR clients and advises on how to stay below the threshold to preserve full deductibility.”
}
}, {
“@type”: “Question”,
“name”: “What is Proposition 19 and how does it affect real estate investors in California?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Proposition 19 eliminated one of the most powerful estate planning tools for California real estate investors: the parent-child property tax exclusion for investment properties. Before Prop 19, parents could transfer rental properties to children with no reassessment — preserving low Prop 13 assessed values indefinitely. Now, only primary residences qualify for the exclusion (with a $1M cap on the value difference). For San Marcos investors with rental properties, Prop 19 makes estate planning more complex and urgent. KDA’s team works with estate planning attorneys to develop Prop 19 mitigation strategies.”
}
}, {
“@type”: “Question”,
“name”: “How do I handle real estate investments in a divorce?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate division in a San Marcos divorce requires careful tax analysis because the ‘equal’ division of assets is rarely equal on an after-tax basis. A property worth $1M with a $200,000 basis (significant accumulated depreciation) has a much larger embedded tax liability than a property worth $1M with a $900,000 basis. The receiving spouse inherits the low basis and will owe taxes on the full gain when they eventually sell. KDA’s team will calculate the after-tax value of each property and help you negotiate a truly equal settlement.”
}
}, {
“@type”: “Question”,
“name”: “What is a Delaware Statutory Trust (DST) and how does it work in a 1031 exchange?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “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 San Marcos 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.”
}
}, {
“@type”: “Question”,
“name”: “What is the QBI deduction and does it apply to rental real estate?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The Qualified Business Income (QBI) deduction under Section 199A allows eligible taxpayers to deduct up to 20% of qualified business income from pass-through entities (LLCs, S-Corps, sole proprietorships). Rental real estate can qualify for the QBI deduction if it rises to the level of a ‘trade or business’ — either through REPS qualification, the STR loophole, or meeting the IRS rental real estate safe harbor (250+ hours of rental services per year, documented in a contemporaneous log). For high-income San Marcos investors, the QBI deduction can generate $20,000–$100,000+ in additional deductions. KDA’s team will determine your eligibility.”
}
}, {
“@type”: “Question”,
“name”: “What is Real Estate Professional Status (REPS) and how do I qualify?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “REPS qualification requires meeting two tests: the 750-hour test (you must spend more than 750 hours in real property trades or businesses) and the majority-time test (real property activities must represent more than 50% of your total personal services). For a W-2 employee working 2,000 hours per year, the majority-time test is nearly impossible to meet — which is why the STR loophole is often more practical for employed investors. For full-time real estate investors, REPS is the gold standard. KDA’s San Marcos team will determine which path — REPS or STR loophole — is right for your situation.”
}
}, {
“@type”: “Question”,
“name”: “How does California treat rental income from out-of-state investors?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “California taxes all income derived from California sources — including rental income from California properties — regardless of where the property owner lives. Out-of-state investors who own rental property in San Marcos must file a California nonresident tax return (Form 540NR) and pay California income tax on their California rental income at California’s rates (up to 13.3%). This applies even if you live in a no-income-tax state like Nevada, Texas, or Florida. KDA’s San Marcos team handles nonresident California tax returns for out-of-state investors and ensures compliance with FTB requirements.”
}
}, {
“@type”: “Question”,
“name”: “What is an installment sale and when does it make sense for real estate?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “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 San Marcos team structures installment sales with appropriate security interests and models the tax impact under various payment scenarios.”
}
}, {
“@type”: “Question”,
“name”: “How do I optimize my real estate tax strategy if I’m a high-income W-2 employee?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “High-income W-2 employees in San Marcos are the ideal clients for real estate tax strategy because they have the most to gain. At a 37% federal rate plus 13.3% California state tax (or 2.5% Arizona), every dollar of real estate loss that offsets W-2 income saves 50%+ in taxes. The STR loophole is the fastest path: buy a short-term rental in a strong market, materially participate (document 100+ hours), and generate $50,000–$200,000 in first-year losses through cost segregation + bonus depreciation. KDA’s San Marcos real estate CPA team will model the exact tax savings for your income level and design the implementation plan.”
}
}, {
“@type”: “Question”,
“name”: “When should a real estate investor hire a CPA?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “If you’re asking when to hire a real estate CPA, the answer is immediately. Every month without a tax strategy is a month of missed deductions. The IRS gives real estate investors extraordinary tax advantages — depreciation, cost segregation, 1031 exchanges, REPS — but only if you know how to use them. KDA’s San Marcos team will audit your current tax position in a free consultation and show you exactly what you’ve been leaving on the table.”
}
}
]
}