Real Estate CPA who can do LLC tax filing

Baltimore, MD · Member since 2018 · 18 posts · 1 vote

Hi BP,

All the brand name CPAs like Provisions, Mark kohler or evne Clint Coon's firm charges around $8K-$10k for LLC real estate tax filing. Those are famous firms and I know those are also for big busienss people. For small guys like me those firms will eat up all the annual rental income. Small guys who are doing house hacking or first time buyers in LLC, can we get some good CPAs in lower fee. This is a Tax season so thought just ask the question in BP Forum.

Thank you all.

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Peter Schuyler

Fort Myers Beach, FL · Member since 2016 · 225 posts · 124 votes

I have had good luck with my-account-online, with @Daniel Hyman. Give him a shout, his team is very responsive.

https://www.biggerpockets.com/co/my-online-accountant-llc

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Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
8y
Isaac,
there are several guys here on BP who specialize working with real estate investors. Try @Michael Plaks, @Nicholas Aiola or @Linda Weygant.
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Nicholas AiolaBusiness Member
CPA & Investor · New York, NY · Member since 2017 · 1k+ posts · 1k+ votes
8y
Thank you for the shout out, @Dmitriy Fomichenko
@Isaac K. feel free to reach out with any questions!
Aiola CPA, PLLC551 Reviews
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
Great community. Thank you all. I can post here too but may be for some other day ;)
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Carl FischerPro Member
Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
8y
@Isaac K.
Wow $8k that seems heavy for just a tax filing. Make sure they know the number of properties and what condition your books are in. Shoe box or QBs? I also like @Lance Lvovsky and @Ashish Acharya answers in the forums.
[email protected]215-283-2868
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James E.
Investor · Boston, MA · Member since 2014 · 232 posts · 165 votes
8y
@Isaac K. go with @Brandon Hall . Listen to him on the podcasts and check out his website - he's awesome.
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
8y
@Isaac K.

a couple of things -
Are you looking to form an LLC or are you looking for the tax return compliance?

If you are looking to form an LLC - you may want to see if you can do it yourself or go to an online website to set it up for you(legalzoom).
If you already have an LLC set up - is the LLC a single member LLC or a multi member LLC?
If it is a multi-member LLC - by default it is taxed as a partnership. Partnership returns were due 3/15.

If it is a single-member LLC - the LLC's information gets reported on your individual return. This is due 4/15(you can request an extension to get additional time to file).

There are many CPA's on BP who work with clients remotely. You may want to interview a couple to see if there is one who you connect with and is in the price range you are looking for.
[email protected]917-280-8544
Basit Siddiqi CPA4.979 Reviews
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Peter Schuyler
Fort Myers Beach, FL · Member since 2016 · 225 posts · 124 votes
8y
I have had good luck with my-account-online, with @Daniel Hyman. Give him a shout, his team is very responsive.
https://www.biggerpockets.com/co/my-online-accountant-llc
2 Reply
Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Basit Siddiqi
I used to live in Queens too. HELLO fellow New Yorker :)
Thanks for your post. Will look into it. I am planning to do hosue hacking but in a twist. My rentals income will go to a LLC as those rooms will be managed by property management. So now am bit confused with depreciation, and 1031 exchange as I am also using it as my primary residence so anything upto $250K should be tax free. BUt also I will have a small office space to run my side business things. That rental LLC will be owned by a holding company; haven't decided whether it will be partnesrhip/disregarded for tax purposes. So any improvements or or needs to be done for rental purposes I have to write those off too. Also in future am planing to invest from those rental income to other proeprties when/if time and oppurtunity comes.
So now you can see how F**ed up plan is. So was curious who can fix this brat ina simple way.
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Basit Siddiqi
Are you looking to form an LLC or are you looking for the tax return compliance-am planning to form LLC in WY but sub LLC in MD

If you are looking to form an LLC - I am getting it through a firm who already doing those for a while.
If you already have an LLC set up - is the LLC a single member LLC or a multi member LLC?-WY LLC will be manager managed. MD LLC will be member-managed by WY LLC.

If it is a multi-member LLC - by default it is taxed as a partnership. Partnership returns were due 3/15.
-not sure about this partnership concept or partnership tax concept will youtube it. You meant 1065-right? not formed yet, but working on it.

If it is a single-member LLC - the LLC's information gets reported on your individual return. This is due 4/15(you can request an extension to get additional time to file).
-It is a structure LLC inside an LLC so not sure what structure it is.

There are many CPA's on BP who work with clients remotely. You may want to interview a couple to see if there is one who you connect with and is in the price range you are looking for.
-I have no problem with remote CPA's but most of them don't have time as they also outsource admin works to their freelancers and when it goes to them it just becomes number, but I am looking for someone who can also answer my questions and build a long-term strategy which will help me to enhance my future tax strategy. Nobody has time for it somehow to go through small delicate Items-that is the problem am facing.
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@James E. Am following Brandon and his youtube. Strategies are good but don't know how to take advantages of it legally so need someone to guide me in initial set up. I heard in his BP YOUTUBE that he doesn't have time to talk to the clients just time for coffee or lunch. But will approach him anyway to see if that what he meant.
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Peter Schuyler Thank you for the suggestion. Will do.
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Carl Fischer Thank you for the advice. Will look into it.
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
8y
@Isaac K.

Yikes - wyoming LLC's and LLC's that manage other LLC's, and foreign LLC's...hmmms definitely not complex for tax return purposes...I just hope you weren't oversold on the structure.

You may want a second opinion on the structure from another attorney(if you haven't already paid that is).
[email protected]917-280-8544
Basit Siddiqi CPA4.979 Reviews
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Basit Siddiqi From liability side my attorney advise was wither S-corp or LLC for asset protection. Holding LLC may be treated will be partnership 1065 as it is earning from sub LLCs. My understanding is Whollyowned LLC will generate K-1 which will be attached to my 1040 and it will not show up in page one of schedule E but in page two-line entry in tax filing which may hit my personal income tax level which will phase out (tax break) at near future. If I keep investing buying one property every year that structure will hit my income tax level.
S-corp- As disregarded/partnership 1065 will hit net investment income tax rate of 3.8% if my whole family ( me+my spouse+other current & future rentals) gross $250K annually or if my all income is over $200k. But also if I start investing in commercial or mobile home park, in future I want to sell as disregarded then those commercial can't show income to future buyer which will give him hard time to acquire loans from a bank as bank can't verify income from those commercials. In that case, S-corp is good. But then from those properties, I can't take losses or depreciation to offset my other incomes?
Both S-corp and LLC provides asset protection so I am looking for CPA.
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Basit Siddiqi WY LCC has only $50 filing fee, so low yearly maintenance, better single member asset protection. Other states probably have zero annual filing fees like Arizona or others but don't have better single member LLC protection. NV has better single member LLC but then annual filing fees are are sky high like DE.
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Jerry W.Pro Member
Moderator
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
8y
@Isaac K., actually the filing fee is based upon the amount of business property you own in Wyoming, so unless you have a load of property in WY there is only a $50 filing fee. Filling out the form online only takes about 10 minutes, but gathering a list of all of the properties and breaking it down by land and nonland takes me a few hours.
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
8y
Originally posted by @Isaac K.:

@Basit Siddiqi From liability side my attorney advise was wither S-corp or LLC for asset protection. Holding LLC may be treated will be partnership 1065 as it is earning from sub LLCs. My understanding is Whollyowned LLC will generate K-1 which will be attached to my 1040 and it will not show up in page one of schedule E but in page two-line entry in tax filing which may hit my personal income tax level which will phase out (tax break) at near future. If I keep investing buying one property every year that structure will hit my income tax level.
S-corp- As disregarded/partnership 1065 will hit net investment income tax rate of 3.8% if my whole family ( me+my spouse+other current & future rentals) gross $250K annually or if my all income is over $200k. But also if I start investing in commercial or mobile home park, in future I want to sell as disregarded then those commercial can't show income to future buyer which will give him hard time to acquire loans from a bank as bank can't verify income from those commercials. In that case, S-corp is good. But then from those properties, I can't take losses or depreciation to offset my other incomes?
Both S-corp and LLC provides asset protection so I am looking for CPA.
Isaac, I have a system like you do, but use it to manage an entire portfolio.
Just house-hacking (our primary has an ADU) we keep simple and own personally to be able to take advantage of the 121 cap gain exclusion one day. Rental income just flows to our schedule E. We act above board and carry good insurance.
Often times over-complicating just puts us into a big pile of dung. Will cost lots of money and indigestion unnecessarily your way at your scale IMO. KISS
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Steve Vaughan Thanks. That's really a great KISS :)
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Isaac K.
OP
Baltimore, MD · Member since 2018 · 18 posts · 1 vote
8y
@Jerry W. Thanks. Didn't know that. The strategy is WY LLC will be acting as a holding company for other foreign LLCs but not holding anything in WY.
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Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
8y
@Isaac K.
What you describe is like buying a huge house with your girlfriend before you are engaged. Because you know, one day you might get married and might end up with 5 kids - so yeah, let's buy a mansion now.
Major overkill, in my opinion. The only people who benefit are those who sold you on that complex setup.
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Jerry W.Pro Member
Moderator
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
8y
@Isaac K., I tend to agree with @Michael Plaks. The real extreme asset protection plans some of these folks sale like Clint Coons are just overkill and really don't do much more than a simple LLC would if you owner operate. You cannot separate yourself from liability for any act you do personally, so even 10 LLCs stacked on top of each other will not protect you. If you look or ask, not a single one of the really big operators on this site use multiple LLC stacked and blind trusts. What is the point of networking and building up a good name if you are anonymous. Again if you personally manage you will never be anonymous. A simple LLC will do 98% of what investors need. Just operate them right.
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