Chicago, IL · Member since 2016 · 238 posts · 68 votes
So, my wife and I just closed on a 2-flat in Chicago and we'll be house-hacking, so we're only using one of the units currently. I understand that cost basis can be one of the harder things in determining depreciation and I want to make sure I capture it, but with all of the paperwork, I feel like I could probably do this myself, at least until I rent out the second unit or buy another property. Has anyone had experience doing this without a CPA?
If I have to get one, I will, but I'm going to have to keep it as cheap as possible since my income on this single unit isn't going to be huge. On that note, does anyone know of a cheap, reliable CPA (either Chicago or Remote) that won't cost me an arm and a leg for a single unit?
Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
10y
Lucas Hammer You don't need a CPA to figure out your basis any more than you need an electrician to replace a ceiling fan.
Nothing wrong with hiring an electrician to do it if you don't have the time or desire to read some instructions, but it's not necessary.
There's a well written summary on the TurboTax community site, but you can read the IRS bulletins directly as well: https://ttlc.intuit.com/questions/2308928-how-do-i-calculate-cost-basis-for-a-duplex-that-i-lived-in-for-several-years-prior-to-selling-in-2013
FWIW, I work with a CPA and still calculate the basis for our purchases / development.