Investor · Shawnee Mission, KS · Member since 2016 · 24 posts · 2 votes
I've prepared our taxes for years using software like TurboTax. Our tax situation is pretty standard, but in addition to a W-2 from my husband's employer, we own two small "businesses" - a freelance company and a real estate company (both are sole proprietorships). This year we purchased another investment property. My questions:
At what point should we hire a CPA to do our taxes?
What are items to make sure I document if I prepare our taxes for 2016? Our lender for the rental property we purchased in 2016 told us there is a big tax deduction for our purchase and gave us a piece of paper that he said our accountant would need. Any other items to make sure to include or watch out for?
Investor · Wilmington, NC · Member since 2013 · 276 posts · 169 votes
9y
Go ahead and get a CPA. They cost more, but you get more. You want to account for expenses associated with the rental (HOA fees, mgmt fees, etc.) and you also want to take advantage of depreciation. Your CPA will help guide you through that. If they don't know how to do that, get another CPA. It's worth the money!
Investor · Wilmington, NC · Member since 2013 · 276 posts · 169 votes
9y
Go ahead and get a CPA. They cost more, but you get more. You want to account for expenses associated with the rental (HOA fees, mgmt fees, etc.) and you also want to take advantage of depreciation. Your CPA will help guide you through that. If they don't know how to do that, get another CPA. It's worth the money!
Accountant · Bethesda, MD · Member since 2017 · 63 posts · 34 votes
9y
Brandon's article is a good read. There are aspects of the tax code affecting real estate that any tax professional with real estate experience will know well. The value added from a knowledgeable tax professional will usually far outweigh the costs. Of course I am a bit biased.