You haven’t even set the table for Thanksgiving, and here we are talking about tax season. Then again, does real estate investment ever take a break? Trust us, we wouldn’t bring this topic up now unless the timing were critical. For Los Angeles area property investors (and many throughout the country), late November and early December are the prime times to get your tax strategies in order. It’s all about maximizing your savings now, thus positioning yourself to enter 2026 with financial strength and resilience. Let’s look at four crucial year-end tax tips that apply to real estate investors, with particular benefit to those in California’s unique market.
Racing for the Deductibles
It can be a tight race to get your claim deductions in under the current calendar year – but it’s worth a shot. For real estate investors, this means taking a scrutinizing look at your rental properties to determine whether outstanding fees can be paid or billed before the year ends. Consider factors such as:
- Insurance
- Maintenance
- Property Management fees
- Repairs
Use Cost-Segregation to Turn Depreciation to Your Advantage
Unless you’re relatively new to property investment, you likely recognize that depreciation allows for some of the most successful tax strategies in an investor’s arsenal. If you have rental properties that were placed in service in 2025, review to determine whether a cost-segregation study could be more beneficial to you by front-loading depreciation on shorter-lived assets rather than accepting straight-line depreciation over the decades.
The Almighty 1031 Exchange
We can’t say enough good things about 1031 exchanges, but, in our defense, they do offer one of the most reliable tax strategies for savvy investors. They also require a little more work and finesse than simply deducting a few items. For one, you have to sell a property. Then, you have to exchange it for a like-kind property. And not necessarily in that order. But if you get the timing right (and it’s admittedly strict), you can save big by deferring capital gains taxes. If you think this could apply to you but don’t really know where to begin, we suggest reaching out to one of our commercial real estate pros.
Maybe Your Tax Strategies Need More SALT
When the Big Beautiful Bill passed earlier this year, our real estate agents were practically knocking on doors and asking, “Do you have a minute to talk about SALT?” We’re, of course, not referring to missionary work (not traditionally, anyway) but instead to state and local tax (SALT), an important factor when assessing sound tax strategies in commercial investments. The federal SALT deduction cap was raised from $10,000 to $40,000 this year and will continue at this rate for five consecutive years. So, if you’re a high-net-worth investor in California, it could be worth it to review your itemizations and the timing of your tax payments. Or, even better, contact one of our agents for an extra pair of informed eyes.
How We Can Help You
We’ve pointed you in a promising direction, but we also get that searching for tax breaks can still be overwhelming. The good news is that this doesn’t need to be a solo journey. If you’re planning on taking advantage of the low-competition holiday season to execute that perfect 1031 exchange, JohnHart’s agents can help you with getting the timing just right while prioritizing your tax strategies. We can scrutinize neighborhood-specific trends in property taxes and shifting values compared with your tax plan. We can even refer you to several local CPAs who have earned our trust over the years.
With each property investor’s situation being unique, this blog should not be regarded as tax advice but rather a checklist of discussion points to address with a qualified adviser. For LA’s homeowners, the final weeks of the year offer a brief but valuable window to refine tax strategies, allowing homeowners to head into 2026 with confidence. Don’t let the holidays distract you from building the future you know you deserve.
