EA OR CPA Whats the best in your opinion?

[Kylie A.]

I've never hired an EA or CPA before and need advice on vetting them to avoid being taken advantage of. I feel capable of handling my accounting in general, but I primarily need help with taxes for my real estate and small investments. I want the best professional who can save me the most money, someone who’s real and honest and doesn’t use too many big words. I’m a huge fan of keeping things simple since it takes me longer to understand complex topics, especially taxes. What should I watch out for, and is there a significant advantage to choosing an EA over a CPA?

[Joshua Thompson]

There is a GREAT post regarding that here. https://www.biggerpockets.com/forums/51/topics/1215989-expla...

At the end of the day the EA and CPA are interchangeable in the tax field, the most important thing is they understand real estate and it's tax implications. I've met some VERY smart CPA's with 3-4 years in the business and I've met some "not so smart" CPA's with 20+ years.

[Simon W.]

Quote from @Kylie A.:

I've never hired an EA or CPA before and need advice on vetting them to avoid being taken advantage of. I feel capable of handling my accounting in general, but I primarily need help with taxes for my real estate and small investments. I want the best professional who can save me the most money, someone who’s real and honest and doesn’t use too many big words. I’m a huge fan of keeping things simple since it takes me longer to understand complex topics, especially taxes. What should I watch out for, and is there a significant advantage to choosing an EA over a CPA?

It's not about EA or CPA, it is about experience and knowledge for real estate. 

For instance, at one point when I was working as a senior accountant in a property management firm, I was training a guy who was a CPA for 30+ years even though I was hired 2 months before him.

I worked only in real estate accounting and financing and became CFO. If I were to apply for a CFO role now, more than likely I have to advantage over a CFO that was in a manufacturing company for a real estate company.

EAs specializes specifically in taxation

CPAs have a broader knowledge for accounting, auditing, financial planning, and taxation.

EA must pass a 3-part IRS exam and do not require a college degree

CPA need a degree in accounting, 150 credit hours of education, must a 4-part CPA exam.

EAs often charge a lower fees

[Rachel Mazzanti]

It sounds like you’re taking a smart approach by looking for a reliable tax professional. If you’re mostly focused on taxes for real estate and small investments, an Enrolled Agent (EA) could be a great choice. They specialize in tax matters and often have lower fees than CPAs. 

Just make sure to check their credentials and experience, and find someone who can explain things in simple terms.Also, keep an eye out for any red flags, like promises of huge refunds without a thorough review or pressure to pay a percentage of your refund. Finding someone honest and straightforward will really make a difference. Good luck with your search!

[Kylie A.]

Quote from @Rachel Mazzanti:

It sounds like you’re taking a smart approach by looking for a reliable tax professional. If you’re mostly focused on taxes for real estate and small investments, an Enrolled Agent (EA) could be a great choice. They specialize in tax matters and often have lower fees than CPAs. 

Just make sure to check their credentials and experience, and find someone who can explain things in simple terms.Also, keep an eye out for any red flags, like promises of huge refunds without a thorough review or pressure to pay a percentage of your refund. Finding someone honest and straightforward will really make a difference. Good luck with your search!

 thank u but i heard cpa have better credentials 

[Kylie A.]

Quote from @Simon W.:

Quote from @Kylie A.:

I've never hired an EA or CPA before and need advice on vetting them to avoid being taken advantage of. I feel capable of handling my accounting in general, but I primarily need help with taxes for my real estate and small investments. I want the best professional who can save me the most money, someone who’s real and honest and doesn’t use too many big words. I’m a huge fan of keeping things simple since it takes me longer to understand complex topics, especially taxes. What should I watch out for, and is there a significant advantage to choosing an EA over a CPA?

It's not about EA or CPA, it is about experience and knowledge for real estate. 

For instance, at one point when I was working as a senior accountant in a property management firm, I was training a guy who was a CPA for 30+ years even though I was hired 2 months before him.

I worked only in real estate accounting and financing and became CFO. If I were to apply for a CFO role now, more than likely I have to advantage over a CFO that was in a manufacturing company for a real estate company.

EAs specializes specifically in taxation

CPAs have a broader knowledge for accounting, auditing, financial planning, and taxation.

EA must pass a 3-part IRS exam and do not require a college degree

CPA need a degree in accounting, 150 credit hours of education, must a 4-part CPA exam.

EAs often charge a lower fees

I might lean more toward hiring an EA and ask how they stay updated on tax laws and regulations since I don’t really need full accounting services. I do like the auditing aspects, though—isn’t that something EAs are knowledgeable about too? I also value the planning element, especially if I’ll be setting up a trust, so now I feel torn about which option is best.

[Jason Malabute]

Hey Kylie! Great question. When it comes to taxes, both Enrolled Agents (EAs) and Certified Public Accountants (CPAs) can definitely help you out and are interchangeable. But here’s the thing: just because someone has an EA or CPA title doesn’t automatically make them a perfect fit for what you need. The key is to find someone who specializes in real estate, as they’ll have the specific knowledge that applies to your investments and can provide tailored advice.

Even better, if you can work with an EA or CPA who actually invests in real estate themselves, that can be a huge plus. They’ll not only understand the tax side but also relate to the unique challenges and strategies that come with real estate investing.

One more thing to keep in mind—don’t worry too much about whether they’re going to “take advantage” of you. A good EA or CPA will charge for their expertise, and it’s usually not cheap. It takes a lot of training and continuous study to stay on top of tax law, especially with all the changes in real estate tax rules. Instead of focusing on the price, try thinking about the value they bring. Are they helping you save or make more money than what you’re paying them? That’s the real measure of whether it’s worth it.

[Kylie A.]

Quote from @Jason Malabute:

Hey Kylie! Great question. When it comes to taxes, both Enrolled Agents (EAs) and Certified Public Accountants (CPAs) can definitely help you out and are interchangeable. But here’s the thing: just because someone has an EA or CPA title doesn’t automatically make them a perfect fit for what you need. The key is to find someone who specializes in real estate, as they’ll have the specific knowledge that applies to your investments and can provide tailored advice.

Even better, if you can work with an EA or CPA who actually invests in real estate themselves, that can be a huge plus. They’ll not only understand the tax side but also relate to the unique challenges and strategies that come with real estate investing.

One more thing to keep in mind—don’t worry too much about whether they’re going to “take advantage” of you. A good EA or CPA will charge for their expertise, and it’s usually not cheap. It takes a lot of training and continuous study to stay on top of tax law, especially with all the changes in real estate tax rules. Instead of focusing on the price, try thinking about the value they bring. Are they helping you save or make more money than what you’re paying them? That’s the real measure of whether it’s worth it.

 thanks for that i see ur a cpa imma shoot u a dm 

[Bill Hampton]

@Kylie A.

You came to the right place. A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

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.

There are over 20 real estate accountants on this site. Reach out to a few, see who you like and see if they are accepting new clients. We are not allowed to solicit clients. 

Ask your potential accountant do they own real estate, do they have clients that own real estate, and how many years of experience do they have.

Good luck.

[Sean Graham]

Quote from @Kylie A.:

I've never hired an EA or CPA before and need advice on vetting them to avoid being taken advantage of. I feel capable of handling my accounting in general, but I primarily need help with taxes for my real estate and small investments. I want the best professional who can save me the most money, someone who’s real and honest and doesn’t use too many big words. I’m a huge fan of keeping things simple since it takes me longer to understand complex topics, especially taxes. What should I watch out for, and is there a significant advantage to choosing an EA over a CPA?

Experience + fit > credentials 

[Markus Shobe]

Both can be a good choice. Just make sure that they understand real estate inside and out. 

[Simon W.]

Quote from @Kylie A.:

Quote from @Simon W.:

Quote from @Kylie A.:

I've never hired an EA or CPA before and need advice on vetting them to avoid being taken advantage of. I feel capable of handling my accounting in general, but I primarily need help with taxes for my real estate and small investments. I want the best professional who can save me the most money, someone who’s real and honest and doesn’t use too many big words. I’m a huge fan of keeping things simple since it takes me longer to understand complex topics, especially taxes. What should I watch out for, and is there a significant advantage to choosing an EA over a CPA?

It's not about EA or CPA, it is about experience and knowledge for real estate. 

For instance, at one point when I was working as a senior accountant in a property management firm, I was training a guy who was a CPA for 30+ years even though I was hired 2 months before him.

I worked only in real estate accounting and financing and became CFO. If I were to apply for a CFO role now, more than likely I have to advantage over a CFO that was in a manufacturing company for a real estate company.

EAs specializes specifically in taxation

CPAs have a broader knowledge for accounting, auditing, financial planning, and taxation.

EA must pass a 3-part IRS exam and do not require a college degree

CPA need a degree in accounting, 150 credit hours of education, must a 4-part CPA exam.

EAs often charge a lower fees

I might lean more toward hiring an EA and ask how they stay updated on tax laws and regulations since I don’t really need full accounting services. I do like the auditing aspects, though—isn’t that something EAs are knowledgeable about too? I also value the planning element, especially if I’ll be setting up a trust, so now I feel torn about which option is best.

EAs aren't going to focus on auditing and planning. They are strictly taxation.

If you are setting up a trust, you should get a CPA.

Find a bookkeeper for your daily driver, if you find one that focuses on real estate, then during year-end your CPA won't charge you an arm and a leg. There are plenty of us on BP just reach out to a few and review their posts and just talk to them if they are open to new clients.

[Michael Plaks]

Quote from @Kylie A.:

I've never hired an EA or CPA before and need advice on vetting them to avoid being taken advantage of. I feel capable of handling my accounting in general, but I primarily need help with taxes for my real estate and small investments. I want the best professional who can save me the most money, someone who’s real and honest and doesn’t use too many big words. I’m a huge fan of keeping things simple since it takes me longer to understand complex topics, especially taxes. What should I watch out for, and is there a significant advantage to choosing an EA over a CPA?

@Joshua Thompson already linked the long post that I wrote to answer your question:
https://www.biggerpockets.com/forums/51/topics/1215989-expla...

Based on your subsequent comments, you missed the point of my post: it DOES NOT matter whether your accountant holds a CPA or an EA designation (or neither of those two). What matters is their competence in real estate taxation and their approach to business. 

[Sean O'Keefe]

CPA, but I should disclose that I might be biased on this :) 

[Kylie A.]

Quote from @Sean O'Keefe:

CPA, but I should disclose that I might be biased on this :) 

 haha what states u work in bc I'm in Oregon 

[Rachel Mazzanti]

Quote from @Kylie A.:

Quote from @Rachel Mazzanti:

It sounds like you’re taking a smart approach by looking for a reliable tax professional. If you’re mostly focused on taxes for real estate and small investments, an Enrolled Agent (EA) could be a great choice. They specialize in tax matters and often have lower fees than CPAs. 

Just make sure to check their credentials and experience, and find someone who can explain things in simple terms.Also, keep an eye out for any red flags, like promises of huge refunds without a thorough review or pressure to pay a percentage of your refund. Finding someone honest and straightforward will really make a difference. Good luck with your search!

 thank u but i heard cpa have better credentials 

I would choose experience over credentials anydays.