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Updated about 3 years ago on . Most recent reply

User Stats

17
Posts
43
Votes
Deniqua Antoine
  • Realtor
  • Magnolia, NJ
43
Votes |
17
Posts

How to find a good real estate CPA in NJ?

Deniqua Antoine
  • Realtor
  • Magnolia, NJ
Posted

For those of you investing in south Jersey, does anyone have a recommendation for a CPA or any advice on finding one? 

Most Popular Reply

User Stats

8,144
Posts
3,677
Votes
Basit Siddiqi
  • Accountant
  • New York, NY
3,677
Votes |
8,144
Posts
Basit Siddiqi
  • Accountant
  • New York, NY
Replied

@Deniqua Antoine

Your profile mentions that you are a realtor + househacking.

If you are a realtor, you want to have a conversation to see if you are eligible for Real Estate Professonal Status(REPS).
Below is a sample of expenses that realtor's are eligible to deduct - MLS Fees, Home office, Mileage, Business Gifts, etc

House hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.

Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return

House-hacking also has considerable tax implications in the event that you want to sell this property.

You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion

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Basit Siddiqi CPA
4.9 stars
76 Reviews

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