CPA, Tax Advisor, Wealth Planner ????

Question

I don't really know what I need.  I think I am looking for someone to do taxes and give tax advice but I am 52 with a great job and would like some advice for investing / retirement planning.  Right now with it being tax season, giving tax advice is the big thing and helping me file the taxes. I worked with a CPA out of state a couple of times and it just felt like I was filling in the blanks - no different than using Turbo Tax - no advice given.  It gave me a bad taste.  I feel like there are a lot of tweaks that I need to make to reduce my tax burden.I starting RE investing back in 2018.  I have 3 rentals now. I would like to add to that I've just been busy with other stuff.

I keep track of income / expenses for my 3 income producing properties in a spreadsheet.

I also just bought a new home last year and still trying to sell the old home. That old home is about to turn into a rental if I don't get someone on the hook.

Jake Baker · Answer

@Troy Welch

Typically CPAs will charge separately for tax preparation and tax advisory. Given that you have 3 rentals and potentially adding more, it would be wise to pay for both. You will save more money than you pay them.

Sean O'Keefe · Answer

@Troy Welch

I don't think the location of the CPA matters provided that they have a solid background in Real Estate and software/tools to support you remotely.Finding a Real Estate CPA is simple. There are 20+ real estate CPAs commenting in this forum. Pick one that is commenting on your specific situation and DM them.

Michael Plaks · Answer

@Troy Welch

These two posts should address some of your concerns:

https://www.biggerpockets.com/forums/51/topics/998718-explai...

https://www.biggerpockets.com/forums/51/topics/1088325-expla...

Account Closed · Answer

Hey @Troy Welch,

Given we have already chatted via direct message, i am leaving this for those who fall on this post in the same situation:

be sure to find an accountant who is willing to grow with you, and is not too high priced fee-wise. Not too low either, you don't want to go with someone who is just focused on price as this is a quality of a not-so-great accountant. Accountants are in such demand, that the best are not even accepting clients half the time.

The other problem I see often with accountants on here is that they specialize in larger investors, and have really high prices when you as a smaller investor do not need all the bells and whistles.

Another thing I see is folks thinking they need to have a tax professional in their state. We as a firm have investors working with us who have rental properties all over the US big and small.

Finding a real estate-focused tax professional and one who can help with advisory and grow with you would be my suggestion to focus your efforts on finding. Best of luck in your search!

Bill Hampton · Answer

@Troy Welch,

I recommend finding an accountant that specializes in real estate taxation and financial planning. You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a tax strategist who is willing to work with you throughout the year, not just when preparing your tax return. You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.Good luck in your search.

Nate Meeker · Answer

@Troy Welch it sounds like you definitely would benefit from tax planning! I have three rentals as well and can attest that there are definitely tips and strategies out there that a knowledgeable CPA, who specializes in real estate, can help you with.

Here's just a few tips...

1. Instead of hiring a CPA, find one who specializes in REI.

2. Like any trade, you need to get a few quotes, ask what they specialize in, and see if you are a good fit.

3.As far as location, it doesn't really matter, the IRS is nationwide and from there states add or subtract their rules.

4. Be careful of firms trying to sell you on $7k plus packages and complex entity structures. Someone with a few properties will benefit greatly from $1,000-$3,000 worth of professional tax prep and consulting.

5. I would not recommend anyone to do their own taxes unless they only have a W2. Similarly, a doctor would only recommend you apply a bandage to a small cut versus do your own stitches on a large gash.

6. A solid CPA will save you more money than they charge you.

Best of luck to you this tax season!

CPA, Tax Advisor, Wealth Planner ????

Most Popular Reply