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“@type”: “ProfessionalService”,
“name”: “KDA Inc. u2014 Real Estate CPA Santa Monica”,
“description”: “Specialized real estate CPA services for Santa Monica, California investors. Cost segregation, 1031 exchanges, REPS, STR loophole, and entity structuring.”,
“url”: “https://kdainc.com/real-estate-cpa-santa-monica-ca”,
“telephone”: “+1-800-KDA-TAXES”,
“areaServed”: {
“@type”: “City”,
“name”: “Santa Monica”,
“containedInPlace”: {
“@type”: “State”,
“name”: “California”
},
“postalCode”: “90402”
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“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”: “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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“@type”: “Service”,
“name”: “STR Loophole Strategy”
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“Real Estate Tax Strategy”,
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{
“@type”: “Question”,
“name”: “What are the deadlines for a 1031 exchange?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The 45-day identification deadline is the most commonly missed in a 1031 exchange. You have exactly 45 calendar days from the sale of your relinquished property to identify up to three replacement properties (or more under the 200% rule or 95% rule). The 180-day closing deadline runs concurrently from the same sale date. KDA’s Santa Monica real estate CPA team begins exchange planning months before your sale to ensure you have replacement properties identified and under contract before the clock starts.”
}
}, {
“@type”: “Question”,
“name”: “How does real estate investing affect my ability to contribute to retirement accounts?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate investing can both help and complicate retirement account contributions. If your rental income is passive (not subject to FICA), it does not count as ‘earned income’ for IRA contribution purposes — you need W-2 or self-employment income to contribute to a traditional or Roth IRA. However, if you qualify for REPS or the STR loophole, your real estate income may be treated as active income, potentially increasing your earned income for retirement contribution purposes. KDA’s Santa Monica team will analyze your income mix and optimize your retirement contribution strategy.”
}
}, {
“@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 Santa Monica, 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”: “What expenses can I deduct for my Airbnb or short-term rental property?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Short-term rental owners in Santa Monica can deduct: mortgage interest, property taxes, insurance, utilities (if you pay them), cleaning and maintenance, property management fees, Airbnb/VRBO platform fees, furnishings and appliances (via bonus depreciation), linens and supplies, repairs, advertising and photography, professional fees (CPA, attorney), and depreciation on the building and improvements. If you use the property personally, deductions must be prorated between rental and personal use days. KDA’s Santa Monica team will ensure you capture every allowable deduction and apply the correct proration method.”
}
}, {
“@type”: “Question”,
“name”: “What is a 1031 exchange and how can a CPA help me use it?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The 1031 exchange is how the wealthiest real estate investors in Santa Monica build multi-generational wealth — by never paying capital gains tax during their lifetime. Every exchange defers the tax, and if you hold the replacement property until death, your heirs receive a stepped-up basis that eliminates the deferred gain entirely. KDA’s Santa Monica real estate CPA team has guided hundreds of exchanges and will ensure yours is structured to maximize deferral and minimize risk.”
}
}, {
“@type”: “Question”,
“name”: “How does estate planning interact with real estate investing?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate estate planning for Santa Monica investors involves three key decisions: (1) how to hold the property (direct, LLC, trust) for optimal estate tax treatment; (2) whether to use lifetime gifting strategies (GRATs, FLPs) to transfer appreciation out of your estate; and (3) how to coordinate real estate with your overall estate plan. The OBBBA increased the estate tax exemption, reducing estate tax exposure for most investors. But for large portfolios, irrevocable trusts and FLPs remain powerful tools. KDA’s Santa Monica real estate CPA team works alongside your estate planning attorney to optimize the real estate component of your estate plan.”
}
}, {
“@type”: “Question”,
“name”: “How does California’s Prop 13 affect real estate investment strategy?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Prop 13 creates a powerful incentive to hold California real estate long-term. The longer you hold, the greater the gap between your low assessed value and current market value — and the more valuable your property becomes from a property tax perspective. This interacts with estate planning: passing a Santa Monica property to heirs under Prop 13 (before Prop 19 eliminated the investment property exclusion) preserved the low assessed value indefinitely. KDA’s team will analyze your Prop 13 position and incorporate it into your overall tax and estate planning strategy.”
}
}, {
“@type”: “Question”,
“name”: “How does the step-up in basis at death work for real estate investors?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “When a real estate investor dies, their heirs receive the property with a ‘stepped-up’ cost basis equal to the fair market value at the date of death. This eliminates all accumulated capital gains and depreciation recapture — potentially millions of dollars in deferred taxes disappear entirely. This is why many sophisticated Santa Monica investors pursue a ‘buy, borrow, die’ strategy: buy properties, borrow against them for liquidity, and hold until death to eliminate the tax liability entirely. KDA’s team integrates estate planning with real estate tax strategy for maximum generational wealth transfer.”
}
}, {
“@type”: “Question”,
“name”: “How does California’s 13.3% income tax rate affect real estate investors?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The 13.3% California income tax rate is a major factor in every real estate investment decision for Santa Monica investors. It makes the 1031 exchange even more critical — a $500,000 capital gain triggers $66,500 in CA state tax alone, on top of $100,000+ in federal tax. It also makes the STR loophole and REPS more valuable — a $200,000 deduction saves $26,600 in CA taxes. KDA’s Santa Monica team incorporates California’s tax structure into every investment analysis and exit strategy.”
}
}, {
“@type”: “Question”,
“name”: “How much does a real estate CPA cost in Santa Monica?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Real estate CPA fees in Santa Monica typically range from $1,500–$5,000 per year for a single rental property owner, and $5,000–$20,000+ for investors with larger portfolios or complex strategies like cost segregation and 1031 exchanges. KDA Inc. offers a free initial consultation to assess your situation and provide a transparent fee estimate. Most clients find that KDA’s fees are recovered many times over through tax savings in the first year alone.”
}
}
]
}