Does state location of Real Estate Tax accountant matter?

[Felicia Lulli]

Hi! I am brand-new to this forum. I am very informally trying to give my mother advice. She has recently purchased an investment property in San Antonio, Texas, her birthplace, where she has not lived for 50 years. She lives full-time in upstate New York. I would like my mom to find a real estate tax accountant who can help her be proactive about her taxes. For instance, she might want to retire someday in Texas, which has cheaper taxes than New York. In the meantime, she needs someone to help her to be proactive with her investment. I have seen positive feedback on this board about Ed Guerrero, CPA in San Antonio on this board. My mom currently goes to someone at Jackson Hewitt for her federal and New York tax returns and I have told her that she needs an upgrade. Would a CPA in Texas be able to handle her New York tax returns as well? Alternatively, would a CPA in upstate New York possibly know about real estate tax strategies in San Antonio? Please advise! Thank you in advance.

0 Votes

[Michael Plaks]

@Felicia Lulli

Technically it does not matter, as long as her accountant knows the relevant state law. Texas does not have state income tax, while New York does. So a New York based accountant is likely to be easier to find. Besides, your Mom might be old school and prefer someone she can meet in person.

JH, like any large company, is a roll of a dice. They have some excellent people and some incompetent ones. With investment real estate, it's more complex, so it's harder to find a good tax person. 

If she has a specific person she is using at JH, have her ask that person about their comfort level with investment real estate. Give them a chance. Then have some real estate accountant review it and confirm whether it's done correctly.

If every year she has a different person working on her taxes, then it's time to find someone both permanent and specializing in real estate.