{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “How do I handle security deposits for tax purposes?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The tax treatment of security deposits for Scottsdale rental property owners is straightforward: deposits held for future return are not income. They’re a liability on your books. When a tenant moves out and you apply the deposit to unpaid rent, that amount becomes rental income. When you apply it to damages, it offsets your repair expense. If you return the full deposit, no tax consequence. KDA’s team will set up proper accounting for your security deposits and ensure they’re reported correctly on your tax return.”
}
}, {
“@type”: “Question”,
“name”: “How does Airbnb income get reported on my tax return?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “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 Scottsdale team will ensure your Airbnb income is reported correctly, all deductions are captured, and your STR loophole eligibility is documented.”
}
}, {
“@type”: “Question”,
“name”: “How can I use a self-directed IRA to invest in real estate?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Self-directed IRAs are a powerful vehicle for Scottsdale real estate investors who want to grow their retirement accounts through property ownership. A Roth SDIRA is especially powerful — all rental income and appreciation grow completely tax-free. The rules are strict: no personal use of the property, no transactions with disqualified persons (family members), and all property expenses must be paid from the IRA. KDA’s team will structure your SDIRA real estate investment correctly and ensure ongoing compliance.”
}
}, {
“@type”: “Question”,
“name”: “What is depreciation recapture and how do I minimize it?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Depreciation recapture is the tax you pay when you sell a property for more than its depreciated book value. The IRS ‘recaptures’ the depreciation deductions you took over the years and taxes them at up to 25% (Section 1250 recapture rate). If you used cost segregation and bonus depreciation aggressively, your recapture exposure can be significant. The primary strategies to minimize recapture are: (1) 1031 exchange — defer all gain and recapture indefinitely; (2) hold until death — heirs receive a stepped-up basis eliminating recapture; (3) installment sale — spread recapture over multiple years. KDA’s Scottsdale team plans for recapture from day one of ownership.”
}
}, {
“@type”: “Question”,
“name”: “Is Arizona a good state for real estate investors from a tax perspective?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Arizona ranks among the most tax-friendly states for real estate investors. The 2.5% flat income tax is dramatically lower than California, New York, or Illinois. There is no estate tax or inheritance tax. The regulatory environment is investor-friendly. And Arizona’s real estate markets — particularly Scottsdale — have shown strong appreciation and rental demand. From a pure tax and investment perspective, Arizona is one of the best states in the country to own investment real estate. KDA’s team will help you maximize every Arizona tax advantage.”
}
}, {
“@type”: “Question”,
“name”: “What is the 14-day rule for vacation rental properties?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Exceeding the 14-day personal use threshold converts your STR from an investment property to a vacation home — with dramatically reduced tax benefits. You lose the ability to generate losses, the STR loophole becomes unavailable, and deductions must be prorated between rental and personal use. For Scottsdale investors who want to use their STR personally, KDA’s team will model the tax impact of different personal use levels and help you make an informed decision about the trade-off between personal use and tax savings.”
}
}, {
“@type”: “Question”,
“name”: “What is an installment sale and when does it make sense for real estate?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Installment sales make the most sense when: (1) you can’t find a suitable 1031 replacement property; (2) you want to generate passive income from the sale proceeds; (3) spreading the gain over multiple years keeps you in lower tax brackets; or (4) you’re approaching retirement and want to match income recognition with your lower-income years. KDA’s Scottsdale real estate CPA team has structured installment sales for dozens of investors and will show you exactly how the tax math works for your specific property.”
}
}, {
“@type”: “Question”,
“name”: “What is a Qualified Opportunity Zone investment and how does it compare to a 1031 exchange?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Opportunity Zones and 1031 exchanges serve different purposes. A 1031 exchange defers both capital gains AND depreciation recapture by reinvesting in like-kind real estate. A QOZ investment defers only capital gains (not recapture) but can eliminate tax on future appreciation entirely after 10 years. QOZ investments also accept gains from stock sales, business sales, and other assets — not just real estate. KDA’s Scottsdale real estate CPA team will model both strategies and recommend the optimal approach for your exit.”
}
}, {
“@type”: “Question”,
“name”: “What is the tax treatment of real estate crowdfunding investments?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate crowdfunding investments for Scottsdale 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.”
}
}, {
“@type”: “Question”,
“name”: “What is the difference between Section 179 and bonus depreciation for real estate?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Section 179 is capped at your business income — it cannot create a loss. Bonus depreciation has no income limitation and can generate a net operating loss (NOL) that carries forward indefinitely. For a Scottsdale real estate investor with a large cost segregation study, bonus depreciation is almost always the better choice because it can wipe out your entire tax liability and create carryforward losses for future years. KDA’s team will model both options and choose the optimal approach for your situation.”
}
}
]
}