A written decision summary
A summary of the property decision, records reviewed, key assumptions, and questions that still need an answer. The depth of the written review follows the agreed scope.
Real Estate Tax Planning · Irvine
Review the tax plan before the property decision is locked in.
A property move affects more than gain or loss. Financing, depreciation, passive losses, title, partners, cash reserves, California tax, and the exit plan can change the result. JH Group CPA helps investors organize those questions before acting.
The intro call confirms fit, timing, and scope. Detailed review and recommendations require an engagement and the relevant records.
Real Estate Strategy Review
Know what the review will deliver.
For Irvine and Orange County property owners facing a purchase, sale, refinance, exchange, or ownership change, the next step can be a paid Real Estate Strategy Review.
The team confirms the scope, fee, timing, and deliverables before detailed work begins. The engagement letter controls what is included.
A discussion of the options
Review the tax, cash-flow, debt, ownership, and timing implications of the options covered by the engagement. Discuss estimates and limitations before choosing a next step.
Practical next actions
An action summary identifying the next records, deadlines, and coordination needed with your attorney, lender, qualified intermediary, or other advisers.
How to start
One decision. A clear next step.
Tell us what you are considering, when you expect to act, and who is involved.
- Confirm fit. The intro call covers the decision, urgency, and scope. It does not include a tax calculation or detailed advice.
- Agree on the work. The team confirms the engagement, fee, records, and timing. Flag any signed agreement or approaching deadline immediately.
- Share records securely. Use the TaxDome instructions provided by the team. Missing records may change the timing or scope.
- Review and act. Discuss the findings and next steps. Confirm responsibility and scope for implementation and any further filings.
Scope and coordination
Know who handles each next step.
Tax-return preparation, ongoing accounting, and additional implementation work are separately scoped unless expressly included in the engagement. Legal documents, financing decisions, and other specialist work stay with the appropriate professionals. The review does not guarantee tax savings or a transaction outcome.
What the review may cover
Build the decision from connected facts.
- Estimated tax and after-tax cash from a proposed sale
- Depreciation history and possible recapture exposure
- Passive-activity losses and participation facts
- Debt payoff, replacement debt, and refinance economics
- Entity, title, partner, and family ownership
- Transaction sequence, deadlines, and implementation team
When to call
Start before timing removes an option.
- Before signing a sale or purchase agreement
- Before refinancing or changing title
- Before the relinquished-property closing in a possible 1031 exchange
- Before ordering a cost segregation study
- Before converting a home or rental to another use
Before selling an Irvine rental
Taxable gain and cash at closing are different numbers.
In a straightforward taxable sale, gain compares the sale proceeds after selling costs with adjusted tax basis. Cash at closing also reflects the mortgage payoff. Paying off the loan does not, by itself, reduce the gain.
Illustrative example only—not a client result or a tax estimate. Assume a cash sale, $60,000 of qualifying selling costs, no exchange, no debt forgiveness and no other closing adjustments.
Estimated gain before tax
- Sale price
- $1,000,000
- Less selling costs
- −$60,000
- Less adjusted tax basis
- −$500,000
- Illustrative gain
- $440,000
Cash before tax and withholding
- Sale price
- $1,000,000
- Less selling costs
- −$60,000
- Less mortgage payoff
- −$650,000
- Illustrative cash
- $290,000
The assumed $500,000 basis already includes applicable adjustments, including depreciation. Actual tax depends on depreciation-related gain, available losses, ownership and other facts. California withholding may further reduce the closing payment; it is not necessarily the final tax.
Records for a focused review
What should you prepare before selling?
Start by telling us the proposed transaction and deadline. After screening, the team confirms the records needed and how to share them securely.
- Purchase closing statement and records of later improvements.
- Depreciation schedules, recent returns and passive-loss carryovers.
- Proposed sale price, selling costs and current loan payoff estimate.
- Title, entity and ownership records, including prior exchanges.
- Expected closing date, cash needs and any replacement-property plans.
Use TaxDome when the team requests documents. Keep tax returns and account details out of the public inquiry form.
Exchange planning
Speak with the CPA and qualified intermediary before closing.
A qualified intermediary helps arrange a deferred exchange; the CPA reviews tax consequences and reporting. In a typical deferred exchange, replacement property must be identified within 45 days after transferring the old property and received by the earlier of 180 days after that transfer or the due date of the return for the transfer year, including extensions. Special rules can affect these deadlines.
An exchange from California property into out-of-state property can require continuing California Form 3840 reporting. Review that obligation before choosing the next property.
Primary references
- IRS Publication 544: sales, gain and deferred exchanges
- California FTB: real estate withholding
- California FTB: reporting like-kind exchanges
Reviewed by Jeff Huang, CPA, MBA. Last reviewed September 8, 2026. Sources checked September 8, 2026. General educational information; transaction-specific calculations and recommendations require an engagement.
Meet Jeff Huang, CPA, MBACommon questions
Real Estate Tax Planning questions
What do I receive from a Real Estate Strategy Review?
The agreed engagement may include a written decision summary, a discussion of the options, and practical next actions. The team confirms the depth of analysis, any calculations, deliverables, fee, and timing before work begins.
What if my property closing is approaching?
Tell us the expected closing date and whether any agreements are already signed. The team checks capacity and scope before accepting the work. An inquiry alone does not confirm that a review can be completed before closing.
Does refinancing a rental property create taxable income?
Loan proceeds generally are not income by themselves, but interest tracing, cash use, ownership, loan terms, and a later sale can affect the full tax and cash-flow picture. Review the transaction documents and intended use of proceeds before closing.
Should I put a rental property in an LLC?
An LLC does not automatically reduce income tax. Legal liability, lender consent, insurance, transfer taxes, property-tax rules, ownership, and tax classification may all matter. Legal questions should be coordinated with an attorney.
When should 1031 exchange planning begin?
Before the sale closes. Exchange timelines and documentation are strict, and tax planning should be coordinated with a qualified intermediary and the other transaction professionals.
Tax-smart planning before major money moves.