First Time House hack, Do I need more help then my HR Block tax person

[John Carr]

Hey Team,

Quick run down. I live in my PR located in IL, but bought a home in FL with my daughter which she is house hacking. We are renting out 3 rooms atm. Since I make well more then my daughter, the plan was for me to claim the house for any tax breaks.

Question is, will we need a more specialized tax professional then the HR Block person I've been using for 20 years. They, the HR Block person, is also an investor and owns multiple properties, so I just assume they are well versed.

Thanks for your thoughts!

[Bill Hampton]

@John Carr

I recommend finding an accountant who specializes in real estate taxation and tax planning. You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

Good luck.

[Joshua Thompson]

It's great to work with a real estate-specific tax professional but it's difficult because you don't always know what you don't know. For example are they making a major mistake? If this is the same person you've worked with for years and have a good working relationship I would first give them the benefit of the doubt and reach out to two other accountants to see if they will do a complimentary review of you previous tax returns. If all appears to be in order then there might not be any harm staying with HR Block. The downside is that a specific individual might not be there next year and you'll have to build a new relationship with someone that might not be as knowledgeable.

Best of luck!

[Markus Shobe]

If the HR person has RE properties I would assume that they are good at real estate tax planning and etc and since you have been with them for 20 years you are familiar with them and they are familiar with you. I would want a RE tax pro that I can reach out to throughout the year and not just during tax time. 

[James Mc Ree]

I agree with @Markus Shobe. You should have a conversation with your HR Block person as a resource to learn what you should be thinking about. Owning a rental home with or without house hacking is a pretty basic thing that almost any certified tax professional or accountant should be able to handle.

Think a little in a bigger picture about what type of advice you will want: tax, accounting, financial planning? The general accountant can help you with more than just tax reporting. The tax person is taxes only. You might get more value from a financial planner or accountant if you want a little more help, such as retirement planning. Just a thought...