Is there a super CPA?

[Troy Walcott]

I purchased my first buy an hold investment property last year.  I'm wondering is there a real difference when it comes to CPA'S.  Is there really a huge benefit to having an astute CPA on my team opposed to going to a box company like H&R Block?  Even from CPA to CPA is there one that can master the manipulation of tax loop holes and the construction of creative tax strategies more than the next?  I mean aren't they all following the same tax law?  I'm paralyzingl myself trying to analyze this stuff because I feel like I need to find the guy who knows to tell me to plant a lemon plant in my backyard so I can claim my property as an agricultural production facility and get a million dollar tax benefit for that year.  Does anyone have any suggestions on questions to ask when interviewing a CPA?  I'm looking for someone patient, will put tax language into dummy terms, works with investors or invest themselves, can give recommend sources of simple education on what I can do from a tax standpoint to improve my business's financial efficiency.

[Karen Rittenhouse]

Hi Troy:

There's a HUGE difference in CPAs. Just like there is in attorneys, contractors, inspectors, and any profession.

And, the difference in CPAs can mean thousands of dollars (even hundreds of thousands) to you. No, H&R Block and the box store accountants are not sufficiently educated to handle real estate investing (and they're probably not CPAs). There are more tax codes than any one human being could ever know, much less understand, so you want someone who specializes in what you do - no matter what that is. Tax strategy for a bakery or dry cleaner is not anything like tax strategy for real estate investors.

That being said, perhaps the best places to start looking would be:

1. ask real estate attorneys for referrals

2. ask around at real estate investor groups

And know that, if you stay in this business, you will more than likely change CPAs as your business and experience grows.

You're asking good questions. Tax strategy and how you structure your corporation makes all the difference in how much of the money that make you becomes money you are ultimately able to keep.