13 Best Real Estate Accounting Software for 2025

At the end of 2023, you had an unrecovered basis of $14,565 ($31,500 − $16,935). If in 2024 https://backinsights.com/professional-real-estate-bookkeeping/ and later years you continue to use the car 100% for business, you can deduct each year the lesser of $1,875 or your remaining unrecovered basis. The following examples illustrate whether the use of business property is qualified business use. For business aircraft, allocate the use based on mileage or hours on a per-passenger basis for the year.

• If the property is not listed in Table B-1, check Table B-2 to find the activity in which the property is being used and use the recovery period shown in the appropriate column following the description.
• This comparison table of leading platforms like Juniper Square, Yardi, MRI Software, InvestNext, and AppFolio helps you evaluate key features, pricing models, and target use cases to identify the best fit for your portfolio’s needs.
• The partnership’s taxable income from the active conduct of all its trades or businesses for the year was $1,110,000, so it can deduct the full $1,110,000.
• Manually adjusting accounts puts the data at risk of error as it’s easy to accidentally miscalculate something or forget to make an adjustment.

How Much Can You Deduct?

In addition, manually updating and consolidating data extends the time it takes to close the books. With these delays, real estate investors don’t see data from early January until the very end of February. This means executives don’t have reliable data when making financial decisions. SoftLedger is a customizable accounting platform designed specifically for multi-entity companies. Rather than creating multiple accounts for each entity, the general ledger always provides a consolidated view of real-time data. From invoicing to yearly reports and period filings, Vertex handles the details.

• TenantCloud is an affordable property management software that helps you manage the financial health of your business.
• They also made an election under section 168(k)(7) not to deduct the special depreciation allowance for 7-year property placed in service in 2023.
• The unadjusted depreciable basis of a GAA is the total of the unadjusted depreciable bases of all the property in the GAA.
• Additionally, it offers invaluable analytics tools that yield critical insights, enhancing your grasp of your rental business’s performance.
• Landlord Studio is the top rated real estate accounting software on the market.
• That’s why purpose-built accounting software designed for real estate is a must-have tool, not a luxury.

Comparison table of real estate accounting software

• However, you do not take into account any credits, tax-exempt income, the section 179 deduction, and deductions for compensation paid to shareholder-employees.
• Its user-friendly interface makes it easy to navigate, and users consistently praise its responsive customer service.
• The total amount you can elect to deduct under section 179 for most property placed in service in tax years beginning in 2024 generally cannot be more than $1,220,000.
• Ensure that it can integrate with the tools you already use, such as the Multiple Listing Service (MLS), digital signature platforms, and marketing automation tools.

Under this convention, you treat all property placed in service or disposed of during any quarter of the tax year as placed in service or disposed of at the midpoint of that quarter. This means that, for a 12-month tax year, 1½ months of depreciation is allowed for the quarter the property is placed in service or disposed of. The recovery period of property is the number of years over which you recover its cost or other basis. It is determined based real estate bookkeeping on the depreciation system (GDS or ADS) used. The basis for depreciation of MACRS property is the property’s cost or other basis multiplied by the percentage of business/investment use.

When Do You Recapture MACRS Depreciation?

It integrates seamlessly with property management systems and third-party tools, offering end-to-end visibility to optimize decision-making for investors, managers, and asset teams. This blog offers a curated selection of the best real estate accounting software in 2026 and aims to help businesses quickly identify the software that best fits their business needs. It caters to property managers, homeowners’ associations (HOAs), and real estate investors. AppFolio provides a comprehensive suite of features, including accounting, leasing, maintenance, and communication tools. Its user-friendly interface and automation capabilities make it a popular choice for those in the real estate industry looking for an integrated solution to manage their properties effectively. Zoho Books is yet another reliable real estate accounting software.

QuickBooks Online: Best for getting started

Calculating split structures, overrides, and tiered commission plans can be a logistical nightmare. Real estate brokerage management software simplifies this process by automating commission calculations and integrating with accounting software. This ensures that agents are paid accurately and on time, which is a key factor in agent retention and satisfaction. Managing a modern real estate firm requires more than just a large network of agents and a steady stream of listings. To stay competitive in today’s fast-paced market, firms must leverage powerful real estate brokerage management software to centralize operations, automate repetitive tasks, and provide a seamless experience for both staff and clients. This technology serves as the backbone of a successful brokerage, ensuring that every transaction is tracked and every lead is nurtured.

See Special rules for qualified section 179 real property under Carryover of disallowed deduction, later. To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business. Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify.

• To qualify for the section 179 deduction, your property must meet all the following requirements.
• The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment property placed in service after 1986.
• This empowers real estate investors to always operate with up-to-date data.
• For business property you purchase during the year, the unadjusted basis is its cost minus these and other applicable adjustments.
• It offers a simple yet efficient platform to track income, expenses, and financial performance.

Leasing & Lead Management

You do not elect a section 179 deduction and elected not to claim any special depreciation allowance for the 5-year property. Because you placed your car in service on April 15 and used it only for business, you use the percentages in Table A-1 to figure your MACRS depreciation on the car. You multiply the $14,500 unadjusted basis of your car by 0.20 to get your MACRS depreciation of $2,900 for 2024. This $2,900 is below the maximum depreciation deduction of $12,400 for passenger automobiles placed in service in 2024. Baselane offers an integrated solution combining banking, rent collection, and bookkeeping specifically designed for landlords and real estate investors seeking to streamline their finances.