Investor · Corona, CA · Member since 2015 · 23 posts · 4 votes
Hey everyone! My wife an I recently purchased a duplex and are house hacking it! We wanted to see if anyone in our area could recommend a good CPA that we could meet with to discuss tax write offs, strategies and what we should be aware of when it comes to bookkeeping. We want to take advantage of everything possible so we'd like to meet with a CPA that specializes in Real Estate. Thanks in advance for any advice/referrals!
Okay, then there's a lot you'll want to think about depending on your other income and your financial situation. You'll also want to think about liability protection too, and an estate plan if you don't have one already. Make sure you find someone who is well versed in depreciation and 179 expense and also think about the timing of when you pay property tax deductions. Then, depending on if you or your wife have a traditional day job, you'll definitely want to consider making estimated payments to avoid underpayment penalties. I'm based in San Diego otherwise I'd offer to work with you but that would be a bit of a commute for you. Oh, and if you're living in the duplex yourself there are additional considerations like 121 exclusion and home-office expenses and depreciation. Hope that helps some!
@Nick Mercurio Property tax payments are usually due twice a year, payable before the due date. The dates vary by county. Most though will have a due date in the beginning of the year such that you have the option of paying it in the prior year. For instance, say property taxes are due June and January. You'll pay the June in year 1 which is deductible in Year 1. But the January payment you have the option of paying in December to deduct in year 1 or January to deduct in year 2. Depending on your tax situation the timing of that deduction could make a big difference especially for rental property because there's no phaseout on deductions like there is for itemized deductions for your primary residence. If you're anticipating big income one year, you could have up to 3 property tax payments in 1 year (January, June, December for the following year)!
Hello @Katie L.. Sorry for reviving an old thread. What are your thoughts on remote relationships with CPA? I have always enjoyed sitting down at the table to discuss taxes, but perhaps thats my comfort based upon habit. Have you done remote accounting/taxes for your clients, and if so do you believe this is just as beneficial?
I think it's a matter of personal preference. I've worked with clients remotely several times without issue. I don't think it affects the quality of the work so much as it does that you don't get to know the person as well. Sometimes you feel more comfortable putting a face to a name, but I think you can be very well served and receive a quality product by just talking over email or the phone just fine.
*This post does not create an attorney-client or CPA-client relationship. Readers are advised to seek professional advice.
Given we are accountants, we cannot promote our services on BP as its against the rules. To help in your search:
be sure to find an accountant who is willing to grow with you, and is not too high priced fee-wise. Not too low either, you don't want to go with someone who is just focused on price as this is a quality of a not-so-great accountant. Accountants are in such demand, that the best are not even accepting clients half the time.
The other problem I see often with accountants on here is that they specialize in larger investors, and have really high prices when you as a smaller investor do not need all the bells and whistles.
Another thing I see is folks thinking they need to have a tax professional in their state. We as a firm have investors working with us who have rental properties all over the US big and small.
Finding a real estate-focused tax professional and one who can help with advisory and grow with you would be my suggestion to focus your efforts on finding. Best of luck in your search!