Proactive Real Estate Tax Planning & Advisory in Utah

Proactive Tax Planning for Real Estate Owners, STR Operators, and Portfolio Investors — Delivered by a Dedicated Real Estate Tax Advisor

As a Utah-based virtual-first CPA firm, Madsen and Company provides proactive real estate tax planning through secure online tools and year-round advisory planning meetings, supporting investors in South Jordan, Utah, and nationwide.

Our real estate tax planning and advisory services are part of our broader tax planning services for business owners and investors.

Real estate investing creates powerful tax opportunities—but only when decisions are made before year-end, not after a return is filed.

At Madsen and Company, we work as real estate tax advisors, helping investors proactively plan, structure, and optimize their tax position across rentals, short-term rentals, and mixed-use portfolios. Backed by over 30 years of CPA experience, our focus is not just bookkeeping or after-the-fact compliance—it’s forward-looking tax strategy that aligns with your investment goals.

Madsen and Company works with real estate investors who need proactive tax planning — not just year-end reporting. Led by Steve Madsen, CPA (licensed since 1993), our advisory services support rental and short-term rental investors nationwide.

Many real estate tax strategies, including depreciation timing, entity structure, and loss utilization, must be implemented before year-end to be effective. Our planning-first approach ensures tax preparation reflects strategy — not missed opportunity.

What Is Real Estate Tax Planning?

Real estate tax planning is the proactive process of analyzing rental income, property use, depreciation, ownership structure, and timing decisions throughout the year to legally reduce taxes and improve long-term after-tax returns.

What a Real Estate Tax Advisor Actually Does

A real estate tax advisor helps investors make tax-smart decisions throughout the year, before those decisions become permanent.

This includes:

• Evaluating how rental activity is classified for tax purposes
• Planning depreciation and loss utilization strategically
• Reviewing ownership and entity structure for long-term efficiency
• Coordinating real estate activity with business income, S-corporations, or other investments
• Anticipating the tax impact of acquisitions, dispositions, and changes in use

Unlike basic tax preparation, real estate tax advisory focuses on strategy, timing, and structure—not just reporting what already happened.

Who This Page Is For

We most commonly work with:

• Long-term rental property owners
• Short-term rental (STR / Airbnb) operators
• Investors with multiple properties or mixed-use portfolios
• Business owners whose real estate activity interacts with an S-corporation
• Investors transitioning from single-property ownership to portfolio growth

If you are simply looking for bookkeeping or basic tax filing, this page is not for you. If you want clarity, planning, and fewer surprises, you are in the right place.

Who We’re Not a Fit For

We may not be the right fit if you are only looking for low-cost tax filing, prefer reactive tax advice, or are unwilling to plan ahead. Our services are designed for real estate investors who value proactive strategy, compliance, and long-term clarity.

Our Proactive Real Estate Tax Planning Approach

We take a proactive, year-round approach to real estate tax planning, focusing on decisions that impact your taxes before they become locked in.

That means:

• Strategic planning meetings throughout the year

• Clear explanations of depreciation, STR rules, and passive activity laws

• Coordination between real estate, business, and personal income

• Adjustments as properties are acquired, improved, or sold

Our goal is to help you make confident investment decisions while minimizing unnecessary taxes and avoiding surprises.

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Why Real Estate Tax Planning Matters

Real estate offers powerful tax advantages—but only when the rules are applied correctly.

Without proactive planning, investors often:

• Miss depreciation or cost segregation opportunities

• Misclassify short-term rentals

• Lose eligibility for active loss treatment

• Trigger avoidable taxable income on disposition

• Discover problems after the tax year is already closed

Real estate tax planning works best when decisions are made before year-end, not when a return is already being prepared.

That’s why proactive real estate tax planning—not last-minute tax preparation—is where meaningful savings are created.

How Our Virtual-First Real Estate Tax Planning Works

• Secure review of closing statements, depreciation schedules, and entity structures

• Year-round planning tied to acquisitions, dispositions, and refinances

• Coordination of multi-state filing requirements

• Strategic guidance for rental and short-term rental tax rules

• Clear planning recommendations before year-end

How Real Estate Tax Planning Differs From Accounting

Real estate accounting records transactions.

Real estate tax planning evaluates how those transactions should be treated for tax purposes.

Accounting answers:

“What happened?”

Tax planning answers:

“What should we do next—and how will that affect taxes long term?”

Many tax benefits available to real estate investors depend on decisions made during the year, not at filing time. Once the year closes, many opportunities disappear.

  Real Estate Tax Advisor vs Traditional CPA

Topic	Real Estate Tax Advisor	Traditional CPA
Primary Focus	Forward-looking tax strategy	Filing past returns
Timing	Ongoing, year-round	Primarily tax season
Real Estate Expertise	Specialized	Often general
Planning Scope	Structure, classification, timing	Compliance-driven
Outcome	Reduced future taxes	Accurate reporting

Many CPAs prepare real estate returns. Fewer act as true real estate tax advisors.

At Madsen and Company, tax preparation and advisory work are coordinated—but planning comes first.

How This Page Connects to Our Other Services

Real estate tax planning often overlaps with other areas of your financial life. You may also want to explore:

Related Tax Planning Services

• S-Corporation Tax Planning → for owners whose real estate activity intersects with business income
• Short-Term Rental Tax Planning → for STR-specific classification and participation issues
• Small Business Tax Planning → when real estate supports or interacts with operating companies

Frequently Asked Questions — Real Estate Tax Planning and Advisory

What does a real estate tax advisor do?

A real estate tax advisor helps real estate investors make proactive, IRS-compliant tax planning before year-end.

Rather than simply filing returns, a tax advisor evaluates how rental activity, ownership structure, depreciation, and income timing affect taxes now and in the future. The goal is to reduce unnecessary taxes while maintaining compliance.

What is the difference between a real estate tax advisor and a CPA?

A CPA may focus primarily on tax preparation and compliance, while a real estate tax advisor focuses on planning decisions before the tax return is filed.

Tax advisory work evaluates entity structure, elections, timing, depreciation strategy, and long-term outcomes—so the tax return reflects intentional decisions rather than after-the-fact reporting.

Do real estate investors really need tax planning, or is tax preparation enough?

Tax preparation alone is often not enough.

Many real estate tax benefits depend on decisions made during the year. Without proactive planning, investors frequently miss deductions, misclassify activity, or lock themselves into inefficient structures.

How are rental properties taxed differently from other income?

Rental income follows a separate set of tax rules.

Real estate activity may be subject to passive loss limitations, depreciation rules, special elections, and activity classifications that do not apply to wages or standard business income. These rules significantly affect how income and losses are treated.

What is the difference between short-term and long-term rental tax treatment?

Short-term rentals may be taxed differently depending on usage and participation.

In some situations, short-term rental activity may avoid certain passive limitations, while in others it remains subject to them. Proper classification depends on the specific facts and must be evaluated proactively.

Can real estate losses offset other income?

Sometimes—but not always.

Loss usage depends on activity classification, participation, income levels, and elections made. Tax planning determines when losses can be used and how to avoid wasting them.

How does depreciation factor into real estate tax planning?

Depreciation reduces taxable income but also affects future transactions.

While depreciation is powerful, it must be coordinated carefully to avoid unintended consequences such as depreciation recapture or unfavorable timing later. Planning ensures depreciation supports long-term goals.

Should real estate investors use LLCs or other entities?

Entity structure matters, but there is no universal answer.

The right structure depends on the number of properties, ownership, income, liability considerations, and long-term plans. Periodic review ensures the structure remains appropriate as the portfolio evolves.

How often should real estate tax planning be reviewed?

At least annually—and whenever major changes occur.

Planning should be revisited when acquiring or selling property, changing rental use, increasing income, or restructuring ownership. Waiting until tax season limits options.

Do you work with real estate investors outside Utah?

Yes. Federal real estate tax planning applies nationwide.

While state-specific rules may apply, our advisory services are delivered virtually and effectively to real estate investors across the U.S.

How do I get started with real estate tax advisory services?

It starts with a conversation about your properties, structure, and goals.

We evaluate your current structure, identify planning opportunities, and determine whether proactive advisory support—not just tax filing—is a good fit.

Short-Term Rental (STR) Tax Planning — Quick FAQs

How are short-term rentals taxed differently than long-term rentals?

Short-term rentals may be treated differently for tax purposes depending on average stay length and the owner’s level of participation. In some cases, STR income may be subject to different activity rules than long-term rentals, which can affect how income and losses are treated.

Can short-term rental losses offset W-2 or business income?

Sometimes. Loss treatment depends on how the activity is classified, the owner’s participation, and overall income levels. Proper tax planning is required to determine whether losses are usable and how to structure the activity correctly.

Do short-term rentals require special tax planning?

Yes. Short-term rentals involve additional classification, recordkeeping, and timing considerations. Proactive planning helps ensure the activity is reported correctly and aligned with long-term tax and investment goals.

Should short-term rentals be owned in an LLC or separate entity?

There is no universal answer. Ownership structure depends on liability concerns, tax treatment, financing, and long-term plans. Structure should be reviewed as the STR portfolio evolves.

Real estate investing rewards proactive tax planning.
A real estate tax advisor helps investors make informed, IRS-compliant decisions before year-end—reducing unnecessary taxes, improving cash flow, and avoiding surprises that often result from after-the-fact tax filing.

Why Choose Madsen and Company

Decades of Experience: Established in 1995, we provide over 30 years of deep technical knowledge in real estate taxation and entity structure.

Schedule a Real Estate Tax Planning Consultation

If you own rental properties or short-term rentals—or are planning to invest—proactive tax planning can significantly impact your taxes, cash flow, and long-term returns.

Most real estate tax strategies must be implemented before year-end to be effective

Schedule a Real Estate Tax Planning Consultation to review your properties, income, and strategy before year-end decisions are locked in.

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