{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What is the 14-day rule for vacation rental properties?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The 14-day personal use rule is critical for Loma Linda STR owners who also use their property personally. If personal use exceeds 14 days (or 10% of rental days), the IRS classifies the property as a vacation home, limiting deductions to rental income and eliminating the ability to generate a tax loss. To preserve the STR loophole, personal use must stay at or below 14 days per year. KDA’s team will set up a personal use tracking system and advise on the optimal balance between personal enjoyment and tax optimization.”
}
}, {
“@type”: “Question”,
“name”: “What is a reverse 1031 exchange and when should I use one?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “In competitive Loma Linda real estate markets, the standard 1031 exchange timeline — sell first, then find a replacement within 45 days — can be extremely challenging. A reverse exchange solves this by letting you buy first, then sell. The IRS allows reverse exchanges under Revenue Procedure 2000-37, with a 180-day window to sell the relinquished property after acquiring the replacement. KDA’s Loma Linda team has coordinated reverse exchanges and will guide you through the additional complexity and costs involved.”
}
}, {
“@type”: “Question”,
“name”: “Can a real estate CPA help me if I only own one rental property?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “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 Loma Linda 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.”
}
}, {
“@type”: “Question”,
“name”: “Should I use an S-Corp for my real estate investing business?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “S-Corps make sense for active real estate income — not passive rental income. If you run a property management company, do fix-and-flips, or earn real estate commissions, an S-Corp can save significant self-employment tax by splitting income between salary and distributions. But for buy-and-hold rental properties, an S-Corp creates more problems than it solves: no 1031 exchanges, no stepped-up basis at death, and complex accounting requirements. KDA’s Loma Linda team will structure your business correctly — S-Corp for active income, LLC/individual for passive rentals.”
}
}, {
“@type”: “Question”,
“name”: “What is the tax treatment of real estate professional fees and commissions?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate professional fees — agent commissions, attorney fees, title insurance, escrow fees — are treated differently depending on whether they’re paid on acquisition or disposition. Acquisition costs (paid when buying) are added to your basis and depreciated over 27.5 or 39 years (or accelerated through cost segregation). Disposition costs (paid when selling) reduce your amount realized, directly reducing your taxable gain. For Loma Linda investors, properly categorizing and tracking all transaction costs can reduce taxes by thousands of dollars. KDA’s team will ensure all transaction costs are captured and treated optimally.”
}
}, {
“@type”: “Question”,
“name”: “How does the tax treatment differ for a REIT vs. direct real estate ownership?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “REITs and direct real estate ownership offer different tax profiles for Loma Linda investors. Direct ownership: depreciation deductions offset rental income (often creating paper losses despite positive cash flow); capital gains taxed at 15–20% on sale; 1031 exchanges available; full control over tax strategy. REITs: dividends are taxed as ordinary income (up to 37%) unless they qualify for the 20% QBI deduction; no depreciation benefit to individual investors; no 1031 exchange eligibility; highly liquid. For tax optimization, direct ownership is almost always superior to REITs for investors who can manage the complexity. KDA’s team will model the after-tax comparison for your situation.”
}
}, {
“@type”: “Question”,
“name”: “What is the difference between the STR loophole and Real Estate Professional Status?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Both the STR loophole and REPS allow rental losses to offset non-passive income, but they work through different mechanisms and have different eligibility requirements. REPS requires 750+ hours in real property activities and majority-time dedication — making it difficult for W-2 employees. The STR loophole requires material participation in a short-term rental (average stay ≤7 days) — achievable for anyone who actively manages their Airbnb or VRBO. For most high-income W-2 earners in Loma Linda, the STR loophole is more accessible. For full-time real estate investors, REPS is more powerful because it applies to ALL rental activities, not just STRs.”
}
}, {
“@type”: “Question”,
“name”: “How does real estate investing affect my FAFSA and financial aid eligibility?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “For Loma Linda real estate investors with children approaching college age, FAFSA planning is an important consideration. Rental income increases your reported income, reducing need-based aid eligibility. Investment properties are reported as assets. Strategies to minimize FAFSA impact include: timing large income events (sales, cost segregation deductions) to years when children are not in the FAFSA window, maximizing retirement account contributions (excluded from FAFSA assets), and using LLCs to potentially reduce reported asset values. KDA’s team integrates FAFSA planning into your overall tax strategy.”
}
}, {
“@type”: “Question”,
“name”: “What is the tax treatment of real estate crowdfunding investments?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate crowdfunding platforms (Fundrise, CrowdStreet, RealtyMogul) typically structure investments as LLCs or limited partnerships, issuing K-1s to investors. The tax treatment mirrors direct real estate ownership: you receive your share of rental income, depreciation, and gains. The key advantage: you get real estate tax benefits (depreciation, potential QBI deduction) without active management. The key challenge: K-1s from crowdfunding platforms are often issued late (September–October), requiring tax return extensions. KDA’s Loma Linda team will integrate your crowdfunding K-1s into your overall real estate tax strategy.”
}
}, {
“@type”: “Question”,
“name”: “How does the One Big Beautiful Bill Act affect real estate investors in 2026?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “For Loma Linda real estate investors, the OBBBA’s key provisions are: (1) permanent 100% bonus depreciation — the most powerful cost segregation tool is now a permanent fixture; (2) permanent 20% QBI deduction — qualifying rental income gets a permanent 20% deduction; (3) permanent TCJA rates — the 37% top rate and favorable capital gains rates are locked in; (4) higher estate tax exemption — more wealth transfers tax-free. KDA’s Loma Linda real estate CPA team will update your tax strategy to fully leverage all OBBBA provisions.”
}
}
]
}