How to find a CPA specialized in REI?

[Lilly Fang]

We have been using our CPA for over 10 years. We are W-2 and have 1 rental last year. However, I got my real estate license, and have done some transactions this year, and bought two more rentals. I am wondering if we should change CPA. If so, how can I find CPA specialized in REI?

[Kelly O'Keefe]

Hi @Lilly Fang, 

There are 20+ REI specific tax professionals here who can help if you choose to switch. There is also a "Build your team" drop down above that lists Tax pros associated with BiggerPockets.

If you are beginning to see issues from your current CPA then it may be time to explore a new one. With both of you being W-2 earners it will be hard to claim the real estate professional status, even though you are licensed. The test for REPS is 750 hours and more than half your time. Therefore, If you work 40 hours a week at your W-2 you need 41 in real estate to be substantiated to claim REPS. 

You can still claim material participation and there are other deductions based type of rental as well. The best way to find someone who fits your needs for a CPA is to see who is commenting on similar posts, or ask a specific question and see who has the most knowledge in that field. I would also recommend talking to/meeting with 3 professionals or more to see which one is the right fit for you. 

Best of luck!