Do I need a Real Estate Tax Accountant?

[Chris Shon]

Hello BP community!

We started an LLC last year and are about to file our first return for 2024. We have purchased a property for flip that's currently under renovation. I wanted some advice on whether we need a specialized tax accountant for Real Estate. They seem to be very expensive and I'm not sure if it's something absolutely necessary or not.

It's a GA LLC, but we're based out of CA.

Any direction would be much appreciated!

[Natalie Kolodij]

I have a few questions- 

"We started an LLC" "We purchased a property"

Who are the legal owners of the LLC? 

Does the LLC legally own the property that was purchased? 

And @Michael Plaks is correct that setting up in GA didn't avoid the CA LLC fee. 

You are now a foreign entity doing business in CA since YOU run the business from there so Cali wants their $800 either way.

So whether you need a REI tax pro is all open to interpretation. Is this 1 flip where you're going to lose $20,000 and never touch real estate again? Then no.

First flip with good margins and intending to do more in the realm of real estate? Find someone now.