When do I need a REI-focused CPA

[Jeff Davis]

Hey community - 

Struggling with when we need to bring on a CPA who is REI-focused. Our current CPA has done our taxes for several years (W2 and small business income) and we believe they've done a good job. We purchased our first REI this year which was a 2-unit MF and we turned one of the units into a STR. We are trying to determine if we need to go with a new CPA that has deeper REI experience and we want someone to give us advice on the best strategy to reduce our tax liability - specifically things like material participation as we are doing all the work for the STR.

Any advice on when/if we need to pivot to a REI-focused CPA? Any help would be greatly appreciated as we start our investment journey. Thanks!

[Jeff Davis]

Quote from @Bonnie Griffin Kaake:

@Jeff Davis My recommendation would be to start interviewing possible real estate savvy CPAs now. They are always busy since there is a shortage of them. Also, get an estimate on cost segregation (no cost) as soon as possible to take advantage of the tax benefits and added cash-flow for 2023. Let me know if I can help or answer any questions for you. 

Thanks @Bonnie Griffin Kaake. Helpful info. When you say "no cost" cost segregation can you tell me a bit more? I thought these sorts of reports where expensive to conduct and that I need to weigh the tax benefit versus the cost. Am I missing something?