Importance of real estate specific accountant

[Stephanie St. Germain]

Hi,

I am in the early stages of my real estate investment journey and under contract with my first rental property, which I intend to use as an STR. I am technically an active CPA but haven't been actively using the certification in almost 10 years and never specialized in tax, but I still have the general background and understanding. I know how important a real estate specific accountant is especially as I start out, but after a couple years of working with a professional and if no significant changes have taken place and I only have 1 investment property, could I not do the taxes myself? Or is a real estate professional absolutely a must?
thank you!

[Chris Picciurro]

Great question and I have been a practicing CPA for almost 25 years. If you are taking advantage of the STR loophole then working with a tax professional that understands it is critical. The tax pro should also work closely with the cost segregation firm. If the rental is passive, you can probably muddle through Schedule E on your own. Have a great day!

[Benjamin Weinhart]

Hi Stephanie,

You may find it useful to get someone who practices in the space every couple of years and especially after a big law change (i.e. 2025 or 2026 tax year after the TCJA expires). I can certainly see what you mean about using SALY as a friend for most years, but unless you want to stay current on all the state/federal income tax laws, you may want to seek out a professional every few years to double-check.

[Zachary Jensen]

Quote from @Stephanie St. Germain:

Hi,

I am in the early stages of my real estate investment journey and under contract with my first rental property, which I intend to use as an STR. I am technically an active CPA but haven't been actively using the certification in almost 10 years and never specialized in tax, but I still have the general background and understanding. I know how important a real estate specific accountant is especially as I start out, but after a couple years of working with a professional and if no significant changes have taken place and I only have 1 investment property, could I not do the taxes myself? Or is a real estate professional absolutely a must?
thank you!

 Hey Stephanie, among other great answers from my BP colleagues I would say having a fairly priced real estate-focused accountant is an absolute must if your goal is to grow and stay compliant. Even if you are someone who is content with "where they are at" so to speak, paying a real estate focused accountant to stay compliant makes sense too. I think practically its best to just find someone you are confident you can trust and stick with them. Life has plenty of things to worry about! Let folks like us take care of your taxes so you can worry about that other stuff :P 

[Basit Siddiqi]

No professional is 'necessarily required' but it is normally a tradeoff between time saving, assurance that things are done correctly for a cost.

For me, i can paint one of my rentals, but i decide my time is better spent elsewhere.

Best of luck.