Tax Planning for Real Estate Investors: A Month-by-Month Calendar

Most real estate investors do their tax planning twice a year: in a rush before December 31 and in a panic before April 15. By then, the decisions that save the most money (when to close, when to sell, when to order a cost segregation study) have already been made.

Good tax planning for real estate investors runs on a calendar, not a deadline. This guide lays out the full year month by month: the federal deadlines, the Texas property tax and franchise tax dates most generic calendars miss, and the one or two decisions that matter most each month.

Why a Calendar Beats Year-End Tax Planning

Real estate taxes are driven by timing. A building placed in service on December 30 can produce a large bonus depreciation deduction this year; the same building placed in service on January 3 pushes it a full year. A sale in a high-income year can cost far more than the same sale a year later. And many Texas owners overpay property tax simply because they miss the May protest window.

A calendar turns those decisions into routine check-ins instead of emergencies. It also keeps your CPA, lender and cost segregation provider working ahead of you rather than behind you.

A note on dates: when a deadline falls on a weekend or holiday, it generally moves to the next business day. Confirm exact dates each year with your CPA and your county appraisal district.

The Month-by-Month Tax Calendar

January: Close the Books and Pay What's Due

January 1: Texas appraisal districts value property as of this date, and a tax lien attaches for the coming year.
January 15: Fourth-quarter estimated tax payment for the prior year.
January 31: Form 1099-NEC to contractors and the IRS. For payments made in 2026 and later, the threshold is $2,000 rather than $600, after the One Big Beautiful Bill Act raised it.
January 31: Last day to pay Texas property taxes without penalty and interest.

Planning move: Gather every closing statement, improvement invoice and loan document from last year. If you bought property and haven't ordered a cost segregation study, order it now so your CPA has it before your return is filed.

February: Organize Basis and Hours

Reconcile 1099s and bank statements for each property and entity.
Update your basis records: purchase price, capital improvements, prior depreciation.
If you're claiming real estate professional status, total last year's hours and make sure your log supports more than 750 hours and more than half of your working time in real property businesses.

Planning move: Ask your CPA whether any property is missing depreciation from earlier years. A change in accounting method filed with this year's return can often catch it up without amending prior returns.

March: Partnership and S Corporation Returns

March 15: Partnership (Form 1065) and S corporation (Form 1120-S) returns and Schedule K-1s are due, unless extended with Form 7004.

Planning move: Real estate partnerships and syndications often extend, which means your K-1s may not arrive until late summer. If you invest passively in deals, plan to extend your individual return rather than file twice.

April: Individual Returns and Texas Renditions

April 15: Individual returns are due, or file Form 4868 for an automatic extension to October 15. An extension gives you more time to file, not more time to pay.
April 15: First-quarter estimated tax payment for the current year.
April 15: Texas business personal property rendition, listing furniture, fixtures and equipment you owned on January 1. A written request extends it to May 15.
Notices of appraised value from Texas appraisal districts usually arrive in April and May.

Planning move: Read every appraisal notice the week it arrives. Compare the value to recent sales, rent rolls and the property's condition.

May: Protest Season in Texas

May 15: Deadline to file a property tax protest, or 30 days after your notice was mailed, whichever is later, per the Texas Comptroller's property tax calendar.
May 15: Texas franchise tax report due for most LLCs, partnerships and corporations.

Planning move: For many Texas investors, a well-documented protest is the highest-return tax task of the year. File for every property where the appraised value runs ahead of the market, even if you plan to settle informally.

June: Mid-Year Projection

June 15: Second-quarter estimated tax payment.

Planning move: Meet your CPA for a mid-year projection. Review income to date, deals you expect to close or sell, and whether this is shaping up to be a high-income year. That answer drives every decision from here to December.

July: Check Exchange and Hours Timelines

If you sold a property this year and plan a 1031 exchange, confirm your 45-day identification and 180-day closing deadlines.
Review your real estate professional hours at the halfway mark.

Planning move: If you're likely to sell this year, decide now whether to exchange, sell outright or wait. Factor in depreciation recapture, which can be a large part of the bill.

August: Line Up Your Fourth-Quarter Team

Texas taxing units hold hearings and adopt property tax rates in late summer.

Planning move: If you plan to acquire or finish a renovation before year-end, book your cost segregation firm, lender and contractors now. Their calendars fill in the fall, and a property must be placed in service by December 31 to count for this year.

September: Third-Quarter Payments and Extended Returns

September 15: Third-quarter estimated tax payment.
September 15: Extended partnership and S corporation returns are due.

Planning move: Use the K-1s you've received to update your projection. Adjust your fourth-quarter estimated payment if income is running higher or lower than expected.

October: Extended Returns and Year-End Strategy

October 15: Extended individual returns are due.
Texas property tax bills typically start arriving in October.

Planning move: Set your year-end strategy: which properties to buy, sell or exchange, which losses to harvest, and whether accelerated depreciation helps this year.

November: Lock In Deductions

Confirm closing dates and placed-in-service dates for any year-end acquisitions or renovations.
Engage your cost segregation provider and schedule site visits.

Planning move: With 100% bonus depreciation now permanent for qualifying property acquired after January 19, 2025, timing is the main lever. Check whether you can actually use the losses this year under the passive activity rules before you rely on them.

December: Execute Before December 31

December 31: Property must be placed in service to qualify for this year's depreciation.
Pay Texas property tax bills on rental properties in December if you want the deduction in the current year; property taxes on rentals are deducted as a rental expense when paid.
Complete or defer sales depending on which year you want the gain in.

Planning move: Run the final numbers with your CPA. Our Q4 cost segregation and bonus depreciation playbook walks through the year-end steps in order.

Habits That Make Every Month Easier

Keep separate bank accounts for each entity and property. It turns January's cleanup into a download.
Log real estate hours weekly. A contemporaneous log is far stronger than a reconstruction.
Store basis documents in one place: closing statements, improvement invoices and cost segregation reports, for as long as you own the property and several years after.
Meet your CPA quarterly, not annually. Four 30-minute check-ins beat one long meeting in March.
Set calendar alerts for every date in this guide, with a one-week warning.

The common thread is people. The investors who handle this well have a CPA who works with real estate, a cost segregation firm that answers in October, and a lender who closes on time.

Frequently Asked Questions

When are estimated tax payments due for real estate investors?

Federal estimated tax payments are generally due on April 15, June 15 and September 15 of the current year, and January 15 of the following year. Investors with rental income, sales or partnership income often need them to avoid underpayment penalties. Deadlines move to the next business day when they fall on a weekend or holiday.

When should real estate investors start tax planning?

Tax planning should run all year, not only in December. The most useful checkpoints are a mid-year projection in June, a year-end strategy meeting in October, and execution in November and December. Acquisitions, sales and cost segregation studies are easier to time well when they're planned months in advance.

When are Schedule K-1s due from real estate partnerships?

Partnerships and S corporations must file returns and issue Schedule K-1s by March 15 for calendar-year entities. Many real estate partnerships extend to September 15, so investors may receive K-1s late in the summer. If you rely on K-1 income, plan to extend your individual return to October 15.

Do landlords have to send 1099s to contractors?

If your rental activity is a trade or business, you generally must send Form 1099-NEC to non-corporate contractors you pay above the threshold. For payments made in 2026 and later, that threshold is $2,000 instead of $600. Ask your CPA whether your rental activity counts as a trade or business.

What is the deadline to protest property taxes in Texas?

In Texas, the deadline to file a property tax protest is May 15 or 30 days after your notice of appraised value was mailed, whichever is later. File with your county appraisal review board, and gather evidence such as recent sales, rent rolls, and repair estimates to support a lower value.

Make Tax Planning a Habit, Not a Scramble

Tax planning for real estate investors pays off when it follows the calendar: estimated payments every quarter, Texas property tax and franchise deadlines in the spring, a mid-year projection, and year-end execution planned in October rather than December.

The calendar is the easy part. The harder part is having the right advisors ready when each decision comes due. REF connects Texas investors and developers with the CPAs, tax attorneys, lenders and cost segregation firms who make that possible. Join REF and build your tax team before next season starts.

This article is for general information and is not tax advice. Consult a qualified CPA or tax attorney about your situation.