Dimov Tax Specialists in San Diego Expands Real Estate Tax Strategy Division as Property Owners Face Complexity in 2026

San Diego CPA Firm Strengthens Support for Investors, and Real Estate Professionals With Advanced Planning, Compliance, and Portfolio Optimization Services.

SAN DIEGO, CA, UNITED STATES, December 17, 2025 /EINPresswire.com/ -- Dimov Tax Specialists, a nationally recognized CPA and advisory firm, announced today the expansion of its Real Estate Tax Strategy Division within its San Diego practice. The enhanced division will offer deeper tax planning, compliance support, and investment optimization services to meet the growing needs of real estate investors, landlords, developers, and short-term rental operators across Southern California.

The expansion comes at a time when real estate owners are facing increased reporting requirements, heightened IRS documentation standards, shifting California regulations, and more competitive investment conditions in the San Diego market.

San Diego’s real estate landscape, characterized by rising property values, strong rental demand, and active investor participation, requires a strategic, highly informed tax approach. Dimov Tax Specialists has strengthened its capabilities to help clients navigate depreciation rules, passive-loss limitations, property transitions, and tax-efficient long-term planning.

“Our real estate clients need more than annual tax preparation; they need a strategic partner who understands the pace of the market and the complexity of property taxation,” said George Dimov, CPA, founder of Dimov Tax Specialists. “This expansion allows us to provide deeper guidance for investors seeking clarity, compliance, and sustainable growth.”

Why Real Estate Taxation in San Diego Requires Specialized Expertise

San Diego’s real estate market presents unique tax challenges due to its mix of long-term residential rentals, short-term vacation properties, multi-unit buildings, and investment-driven transactions. As regulatory oversight increases in 2026, real estate investors and property owners face greater risk from improper reporting, missed deductions, and compliance errors. This makes specialized tax expertise essential.
Heightened IRS Focus on Depreciation and Cost Basis Accuracy

The IRS continues to place greater emphasis on accurate depreciation schedules, cost basis documentation, and proper tracking of capital improvements. Errors in these areas can lead to audit exposure, underreported deductions, or incorrect capital gains calculations at the time of sale. Many property owners underestimate how small documentation mistakes can compound into significant tax consequences over time.

Expansion of Short-Term Rentals and Mixed-Use Properties

San Diego’s growing short-term rental market, particularly among Airbnb and VRBO operators, introduces added tax complexity. Owners often struggle with allocating expenses between personal and rental use, understanding local occupancy tax obligations, and determining whether income qualifies as passive or non-passive. Material participation rules and passive activity limitations further complicate compliance. Misclassification can result in lost deductions or unexpected tax liabilities.

Capital Gains, Depreciation Recapture, and 1031 Exchange Planning

With property values rising across the region, capital gains planning has become increasingly important. Investors must carefully manage depreciation recapture, capital gains timing, and potential Section 1031 exchanges to avoid unnecessary tax exposure. Poor planning, especially around partial exchanges, multi-property transactions, or missed deadlines, can lead to avoidable tax costs that significantly reduce investment returns.

California-Specific Tax and Recordkeeping Challenges

California’s tax system adds another layer of complexity. The state requires precise documentation for rental expenses, passive loss limitations, and income apportionment. Even minor inconsistencies can trigger Franchise Tax Board notices, audits, or additional assessments. For high-income property owners, the margin for error is especially narrow.

Rising National Reporting and Enforcement Standards

At the federal level, the IRS continues to expand electronic filing requirements, information matching with rental platforms, and enforcement related to real estate activity. High-value property transactions and investment portfolios are receiving increased scrutiny. This reinforces the need for proactive compliance and strategic planning rather than reactive filing.

Expanded Real Estate Tax Strategy Services

To address these growing challenges, Dimov Tax Specialists has expanded its Real Estate Tax Strategy Division. The firm now offers structured, end-to-end support for property owners in San Diego and nationwide.

Cost Segregation and Accelerated Depreciation

The firm provides detailed cost segregation studies designed to identify opportunities for accelerated depreciation by separating structural and non-structural components. These strategies can improve cash flow and reduce current-year tax liability for residential rentals, commercial buildings, multi-unit properties, and renovated or newly acquired assets. Dimov Tax Specialists collaborates with engineering-based cost segregation professionals to ensure accuracy and IRS defensibility.

Rental Property Bookkeeping and Compliance Support

Accurate bookkeeping is critical for both federal and California tax compliance. The firm supports clients with monthly bookkeeping, expense allocation for mixed-use properties, reconciliation of rental platform income, and preparation of clean year-end reporting packages. Proper records allow investors to confidently claim deductions while remaining audit-ready.

Short-Term Rental Tax Planning

For vacation rental operators, Dimov Tax Specialists provides guidance on occupancy tax compliance, income classification, material participation analysis, and local San Diego reporting rules. Many short-term rental owners qualify for additional deductions when their activities are correctly categorized and documented.

Capital Gains and 1031 Exchange Strategy

The firm advises investors throughout the 1031 exchange process, including like-kind identification rules, timing requirements, basis adjustments, and depreciation recapture mitigation. For complex or multi-state exchanges, Dimov Tax Specialists works closely with qualified intermediaries to ensure proper execution and compliance.

Real Estate Professional Status Evaluation

For qualifying investors, Real Estate Professional Status can unlock significant tax advantages. Dimov Tax Specialists conducts detailed activity and participation analysis, prepares supporting documentation, and evaluates IRS defensibility to help clients determine whether they meet the required criteria.

Acquisition, Sale, and Long-Term Transition Planning

Beyond annual filings, the firm assists clients with long-term planning related to property acquisitions, sales, inherited real estate, and portfolio restructuring. This includes basis step-up strategies, capital gains planning, and guidance on entity selection for rental and management activities.

Why Dimov Tax Specialists Expanded These Services Now

Several market and regulatory trends influenced the expansion:

1. Strong Investor Demand in San Diego
San Diego remains one of the most active real estate markets in the United States, with significant investor participation in both long-term and vacation rentals.
2. Rising Scrutiny of Deduction Accuracy
The IRS and California Franchise Tax Board continue increasing oversight of rental income, depreciation records, and property transactions.
3. Growth of Multi-Property Portfolios
More investors are scaling portfolios, creating the need for structured financial systems and long-term planning.
4. Higher Stakes for Incorrect Filings
Errors in depreciation, passive loss classification, or property basis can result in costly penalties or missed deductions.

“Our expansion is about giving real estate clients more clarity, stronger systems, and long-term peace of mind,” Dimov said. “Real estate is one of the most powerful wealth-building tools, but only when taxes are handled strategically.”

About Dimov Tax Specialists

Dimov Tax Specialists is a trusted national CPA firm offering tax preparation, planning, audit defense, business advisory, and real estate tax strategy. The firm serves individuals, investors, and businesses through personalized, detail-driven services designed to improve financial outcomes and reduce compliance risk.

Contact Information

- Dimov Tax Specialists
- 600 B Street, Suite 300, San Diego, CA 92101
- Phone: +1 833-829-1120
- Website: https://dimovtax.com/locations/cpa-san-diego-ca/
- Email: support@dimovtax.com


Sources
Internal Revenue Service. (n.d.). Residential rental property (including rental of vacation homes) (Publication 527). https://www.irs.gov/publications/p527
Internal Revenue Service. (n.d.). Like kind exchanges under Internal Revenue Code Section 1031. https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-section-1031
California Franchise Tax Board. (n.d.). Rental income and residency rules. https://www.ftb.ca.gov
National Association of Realtors. (n.d.). U.S. real estate market data. https://www.nar.realtor
U.S. Department of Housing and Urban Development. (n.d.). California housing market insights. https://www.huduser.gov
Airbnb, Inc. (n.d.). Host tax responsibilities. https://www.airbnb.com/help

Dimov Tax Specialists
Dimov Tax Specialists – San Diego, CA
+1 833-829-1120
support@dimovtax.com
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