390. The Tax Elections You Might Already Be Stuck With (And How to Save Up to $40,000)

Some tax decisions are easy to change. Others can lock you into a strategy you may not be able to undo. In this episode of the Tax Smart REI Podcast, Nate Sosa sits down with Hall CPA Senior Advisory Manager Justin Shore to break down tax elections that real estate investors need to understand before filing their returns. They discuss how elections can be buried inside a tax return or even be made simply by failing to file a form or check the right box. Nate and Justin cover real estate professional status and grouping elections, opting out of bonus depreciation, installment sales, 1031 exchanges, Section 754 elections, and grouping businesses under the passive activity rules. They also explain why timing matters, when an election can restrict future tax-planning opportunities, and why investors should understand the decisions being made on their returns rather than simply signing and filing. If you're buying or selling real estate, claiming depreciation, qualifying as a real estate professional, or making other major tax moves, this episode highlights the questions you should be asking your tax professional before the return is filed. Request a consultation from Hall CPA at go.therealestatecpa.com/3KSEev6 Register for FREE access to the 2026 Hall CPA Tax Strategy Summit: www.taxandlegalsummit.com/2026signup Join the Hall CPA Team: www.therealestatecpa.com/careers/ Submit your question for Tom & Nathan: go.therealestatecpa.com/question The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.