Outsourced Bookkeeping for Real Estate Investors — Multi-Entity, Multi-Property, K-1 & 1031 Ready

It depends on entity structure and lender requirements. If each LLC is a separate legal entity filing its own 1065 partnership return, we strongly recommend separate QBO files. Each LLC's books need to stand alone for its own tax return, K-1 issuance, and any future bank financing. Some investors have one parent LLC with several disregarded single-member LLC subsidiaries (a common holding structure). In that setup, a single QBO file with class tracking by property can work well. We make this recommendation during onboarding based on your specific entity diagram.

Yes. We maintain a fixed-asset register with a depreciation schedule for every property. That covers building basis vs. land, plus 27.5-year residential or 39-year commercial recovery. It also tracks bonus depreciation elections and any cost-segregation reclassifications to 5/7/15-year property. The schedule reconciles to your books and is ready for your 4562 every year. If you switch to ProAxis tax preparation, the handoff is simple because the schedule is already in our system.

Yes — and this is one of the most common reasons investors switch to us. A cost segregation report is meaningful only if it gets implemented in your books and on your tax return. We take the engineering study and reclassify the components in your fixed-asset register. We calculate the Section 481(a) catch-up adjustment for prior years (if applicable) and apply bonus depreciation correctly. We coordinate with your tax preparer (or prepare the return ourselves).

We book the relinquished property disposition (clearing basis, accumulated depreciation, and selling costs). We set up the replacement property with correct carryover basis plus any excess basis from boot or new debt. We also track exchange-related capitalized costs. The result is a thoroughly documented basis schedule for the eventual sale of the replacement property. It covers built-in gain, recapture potential, and substituted-basis components, with organized supporting records.

Yes. Real estate professional status under IRC section 469(c)(7)(B) has two tests, and the same spouse must meet both: more than 750 hours of services during the year in real property trades or businesses in which that person materially participates, and more than half of all personal services that person performs in any trade or business during the year performed in those real property trades or businesses. On a joint return one spouse must satisfy both tests alone — hours cannot be pooled. We help that spouse keep a contemporaneous time log by activity supporting both tests. We also coordinate with our tax team on the Reg. § 1.469-9(g) election to treat all rental real estate interests as a single rental real estate activity, which is what makes suspended PALs deductible against other income for a qualifying taxpayer. REPS is heavily scrutinized by the IRS. We help you maintain organized, contemporaneous records to support your position if questioned (outcomes depend on your facts).

Pricing scales with number of entities, number of properties, and transaction volume. A solo investor with 3–5 single-family rentals in one LLC typically runs $400–$700/month. A multi-entity investor with 15+ doors and a small syndication runs $1,000–$2,500/month. Pricing is fixed monthly — no hourly billing. After a free discovery call we provide a firm quote.

ProAxis starts with a free scoping call that includes a read-only look at your current file. The monthly fee is documented in a written engagement letter before any work begins. During onboarding we review your entity diagram and recommend separate QBO files or class tracking by property. We then connect bank feeds and correct what needs it. Your per-property depreciation and basis schedules are maintained as part of the monthly cycle. Nothing is needed from your current bookkeeper beyond file access — we handle the transition mechanics.