Year-End Tax Moves for Vets

Year-End Tax Moves for Veteran Real Estate Investors

real estate| Veterans
November 22, 2023•3 min read

The end of the year is crunch time for real estate investors—and for veterans who own property, it’s the perfect moment to optimize your tax position, reduce liabilities, and prepare to scale in 2024.

Whether you own a VA-financed rental, a house-hack duplex, or a small portfolio of properties, here are the top year-end tax moves every veteran investor should consider before December 31.

1. Accelerate Deductions Where Possible

Now’s the time to prepay expenses that you’ll be able to write off in this year’s return:

  • Mortgage interest

  • Property taxes

  • Insurance premiums

  • Repairs and maintenance

If you're planning improvements in January, consider doing them now to maximize your 2023 deductions.

2. Take Full Advantage of Depreciation

Real estate investors can depreciate their buildings over 27.5 years—resulting in a powerful paper loss that lowers taxable income. Veterans should make sure they’ve:

  • Started depreciation schedules for all new properties

  • Claimed partial-year depreciation correctly

  • Consulted with a CPA to explore bonus depreciation (for qualifying improvements or assets)

3. Track Mileage and Travel

If you traveled to manage your properties or meet with contractors, that mileage may be deductible. The IRS standard mileage rate for 2023 is 65.5 cents per mile. Keep detailed records—this deduction adds up fast.

Veteran Tip: Even if you live in the property (house-hacking), travel related to tenant or maintenance issues may still count.

4. Run a Year-End Profit & Loss Report

If you’re treating your investing like a business (as you should), run a P&L report to assess your:

  • Cash flow

  • Net profit

  • Outstanding expenses

  • Estimated tax liability

This helps you prepare for Q4 estimated taxes and spot opportunities to invest in deductions before year-end.

5. Consider a Cost Segregation Study

If you’ve recently purchased or renovated a property, a cost segregation study could accelerate depreciation by categorizing components like flooring, appliances, or lighting for faster write-offs.

This move can slash your tax bill—but only if done before the end of the year.

6. Evaluate 1031 Exchange Opportunities

If you sold a property for profit in 2023, you may owe capital gains taxes—unless you reinvested through a 1031 exchange. If not, you might still be able to plan for installment sale structures or deferral strategies.

7. Contribute to a Solo 401(k) or SEP IRA

As a real estate investor, you're likely self-employed. That means you can reduce your tax bill while saving for retirement by contributing to:

  • A Solo 401(k)

  • A SEP IRA

Both allow for higher contribution limits than traditional IRAs and can be powerful tools to defer income while investing for the long-term.

8. Work With a Military-Savvy CPA

Tax code changes every year—and there are special considerations for veterans, such as disability income exclusions, state property tax exemptions, and VA loan benefits. Don’t leave money on the table. Find a CPA who understands your military background and your real estate goals.

Bottom Line:
As a veteran real estate investor, the right year-end moves can mean thousands in tax savings and a stronger launchpad for next year. Don’t wait until January to plan—get strategic now, and make your VA-backed investments work even harder for you.

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