Accounting services built for Chicago real estate professionals
Real estate portfolios need accounting that reveals which properties perform and which don’t. Property-level bookkeeping, multi-entity management, and accurate financial statements give you visibility into your investments – and give your tax advisor the organized records they need for strategic planning.
Since 2014, our Chicago-based CPA team has worked with real estate developers and investors managing residential, commercial, and mixed-use properties. We handle local and multi-state portfolios, providing the accounting infrastructure that supports smart decisions and effective tax planning.
Real Estate Accounting Services
Over a decade of industry experience
From trust accounting for property managers to job costing for developers, we provide the specialized accounting knowledge your real estate business needs.
Property Management Companies
Property managers need trust accounting that keeps owner funds separate from operating funds. It’s not just good practice, it’s a regulatory requirement. We handle the trust accounting, prepare monthly owner reports that show income and expenses clearly, and track tenant deposits and rent collection across your portfolio. You stay compliant and your property owners stay informed.
Real Estate Developers
Development projects need detailed cost tracking from land acquisition through certificate of occupancy. We maintain job costing by phase, coordinate with your construction draw schedule and lender requirements, track capital accounts when you have multiple investors, and handle revenue recognition throughout the project. You see exactly where money goes at every stage.
Commercial Property Owners
Triple net leases mean tracking Common Area Maintenance charges, recovering expenses from tenants, and reconciling what you billed versus actual costs. We handle Common Area Maintenance (CAM) reconciliation, track tenant improvements properly, manage expense recovery, and ensure costs get allocated correctly between you and your tenants. No surprises at year-end reconciliation.
Rob is unbelievably knowledgeable, making the annual accounting process seamless. He communicates information in a tangible, digestible manner and looks out for his clients! Choosing to work with Pasquesi Partners was one of the best decisions I’ve made for my business.
– Kevin K.
Clear financials across your entire real estate portfolio
Property accounting & bookkeeping
Challenge
You need accounting that tracks multiple properties separately, categorizes expenses properly, and shows which investments perform.
Without property-level detail, you can’t see profitability or make informed decisions.
Solution
We handle ongoing bookkeeping for each property:
- Track income and expenses separately
- Process payroll for property management and maintenance teams
- Calculate performance metrics like NOI and cash-on-cash returns
- Deliver investor-ready financial statements
Depreciation optimization & cost segregation support
Challenge
Accurate depreciation records are essential for financial statements and tax reporting.
Cost segregation studies reclassify property components into shorter depreciation periods, but require detailed accounting coordination.
Solution
We maintain detailed depreciation records that support tax planning strategies:
- Depreciation schedules by asset class
- Basis adjustments and accumulated depreciation tracking
- Coordination with cost segregation specialists
- Organized records for your tax advisor
1031 Exchange accounting support
Challenge
1031 exchanges require precise tracking of basis, exchange proceeds, and replacement property costs.
Strict timelines and documentation requirements mean accounting errors can jeopardize tax deferral.
Solution
Organized accounting supports successful exchanges and proper ongoing depreciation.
- Track property basis and accumulated depreciation
- Maintain records of exchange proceeds and costs
- Coordinate with intermediaries and your tax advisor
- Monitor documentation and deadline requirements
- Calculate adjusted basis in replacement properties
Entity Structure & Multi-Entity Management
Challenge
Commingled funds destroy liability protection, and improper entity accounting triggers audit risk.
Real estate investors use multiple LLCs to protect assets, but managing separate books for each entity makes bookkeeping complex.
Solution
Clean entity accounting protects your assets while supporting proper tax reporting.
- Separate books for each legal entity
- Consolidated reporting across ownership structures
- Capital account tracking by member
- Records organized for K-1 preparation
Your real estate accounting partner in Chicago.
Get organized books, clear performance tracking, and the visibility you need to make confident investment decisions.
What our clients say
Have questions? Book your complimentary 20-minute consultation call with Rob.
Our Approach
We’re not just recording transactions. We provide clear explanations of your financials and personalized guidance for your portfolio. Proactive, year-round support, not just when tax season arrives.
Personal service, national reach – We’re based in Chicago, but we support clients across the U.S. Learn more about working with us.
How we work with real estate clients
Not transactional. Not seasonal. Just consistent, proactive business accounting service and personalized support for every question.
1
Discovery
We start at the beginning: understanding your current accounting setup, and what’s frustrating you. You walk us through your properties, your goals, and what you need from your accounting.
2
Setup
Everything gets organized the right way. We build accounting systems that track each property separately, maintain clean books for every entity, and deliver reporting that shows true performance.
3
Day-to-day
Your accounting runs smoothly without consuming your time. We handle the ongoing work: bookkeeping, payroll, monthly close, financial statements.
4
Year-round support
Real estate projects don’t wait for tax season, and neither do we. We adjust as your portfolio grows, keep your books current, and maintain the organized records your tax planning depends on.
Ask a CPA
Real estate accounting & tax FAQs
Real estate accounting requires specialized knowledge of depreciation rules, 1031 exchanges, passive activity loss limitations, and multi-entity structures. Property-level tracking captures income and expenses by individual investment, showing which properties generate returns. Depreciation optimization through cost segregation accelerates tax deductions. Entity accounting manages multiple LLCs while preventing commingling. Real estate professional status determination affects whether rental losses offset regular income.
CPAs provide critical 1031 exchange support by analyzing potential tax liability before sale, confirming properties qualify for exchange treatment, tracking the 45-day identification and 180-day acquisition deadlines, coordinating with qualified intermediaries, and calculating basis in replacement properties. Exchange mistakes forfeit tax deferral, often hundreds of thousands of dollars. We plan exchanges before you list properties, monitor deadlines throughout the transaction, and ensure proper documentation and compliance with all exchange requirements.
Real estate professional status allows rental property losses to offset your regular W-2 income instead of only offsetting passive income. To qualify, you must spend more than 750 hours and more than half your working time in real estate activities where you materially participate. The aggregation election lets you treat all rental properties as one activity for material participation purposes. Qualifying can save tens of thousands in taxes annually, but strict documentation requirements mean many claimed deductions get disallowed in audits. Understanding real estate professional status requirements helps investors legitimately claim significant tax benefits.
Cost segregation reclassifies property components from long depreciation periods into shorter ones. Instead of depreciating everything over 27.5 or 39 years, components like flooring, lighting, and landscaping get reclassified to 5, 7, or 15-year periods. Bonus depreciation then allows immediate deduction of a significant portion. A property generating $20,000 annual depreciation under standard methods might generate $100,000 or more in first-year deductions after cost segregation. The tax savings compound over time and improve cash flow immediately.
Trust accounts require separate bank accounts that segregate client or tenant funds from your operating funds. Property managers typically need trust accounts for security deposits and rent collected on behalf of property owners. Start by opening a dedicated bank account clearly labeled as a trust account, establish accounting systems that track trust funds separately from operating funds, implement procedures for deposits and disbursements that maintain the separation, and create reconciliation processes that verify trust account balances monthly. Many states require specific trust account procedures for property managers—compliance prevents regulatory problems and protects your business license. Professional accounting ensures proper setup and ongoing compliance with trust account requirements.
Property management accounting tracks both your management company operations and the properties you manage for owners. It requires trust accounting to separate owner funds from management operations, owner reporting that shows property income and expenses, tenant accounting for rent collection and deposits, and management fee tracking. Property managers serve two audiences—you need to monitor your own business profitability while providing owners the financial information they expect. Proper property management accounting maintains required fund separation, automates owner distributions and fee calculations, and provides the reports that keep property owners informed and satisfied.
We work with real estate investors and developers nationally. Real estate portfolios often span multiple states, and we handle multi-state compliance. Our Chicago office serves clients with properties across the country.