Questions to ask a CPA?

[Keith Lutz]

Since we are approaching tax season, and I am new to investing, I figure it would be a good idea to look/interview for a CPA?

Do you have any qualifying questions I should ask?

I figure one pre-qualifiying question would be if they have real estate investments themselves. Aside from that I am at a loss, any help much appreciated.

I remember seeing another thread, where someone said not to be too concerned with the CPA portion of those creditentials. Do BP'ers agree?

Thanks,
Keith

[Eamonn McElroy]

@Ryan Kuja I imagine it depends on how many White House Honey Ales he's had.

[Ryan Kuja]

Ha ha :) You're right. That would be the deciding factor. I like the way you think!

[Account Closed]

Being recently divorced my accumulation of investment properties and assets has obviously suffered, looking to start building up again and having a hard time deciding the best course of action for funding the purchase. Ideally looking for properties with rehab and high ROI opportunities but not to rehab and flip, I would like to rehab and hold (rentals). If the numbers makes sense is it advantageous to refinance after rehab and use cash for another investment? Is it better to borrow from private lender or hard money and refinance when term is up each time that way?

[Eric Feng]

I'm in the same situation as @Mora Clark, owning just 1 property under my name. I wonder if it's worth it to just do tax a planning session with a tax accountant. After all, you don't know what you don't know. By talking to a professional, I assume that they can help you plan a road map, on how to structure the business?  

I'm also doing my research on this topic. Plan to do my own taxes for 2018, but I'm also considering talking to a tax professional now to do some tax planning, as I'm foreseeing my tax situation gets more complicated for 2019 & 2020.

Although I can still somewhat do my own taxes now, I am unsure of what documents to keep and also whether my current plan will maximize my tax deduction. Also I'd like to have the right and needed documents ready to hand off when the business gets bigger and more complex. Without planning ahead, I can foresee a lot of missing documents and headaches.  Anyone have any experience in this or have good suggestions?

[Kathy Harrison]

I am searching for a line of questions that are directed toward investing that I should ask a CPA here in TEXAS.  I appreciate any assistance.

[Steven Hamilton II]

Originally posted by @Kathy Harrison:

I am searching for a line of questions that are directed toward investing that I should ask a CPA here in TEXAS.  I appreciate any assistance.

 No different than the above list of questions

[Nicholas Moran]

hello, I'm going to be a single property owner soon I have a property under contract from 2018 and I've done my own tax with turbo for the last 3yrs. What year should I deduct home inspection for this property 2018 or 2019?

I should be closing within the next seven days. I never own a property before so I don't know if its going to be complicated going forward.

Thanks

[Steven Hamilton II]

You will want to consult with an accountant. It is safe to say you have moved passed the DIY point. Depreciation, loan costs, placed in service dates are all dependent upon facts and circumstances. 

The home inspection itself is not a 100% deduction it is a part of the basis of the home.

[Gita Faust]

Keep it SIMPLE

Real estate is a business, not a hobby. 

Anything you pay for a property is deductible. 

Anything you pay for building your real estate venture is deductible.

[Steven Hamilton II]

Please stop giving incorrect advice there is a difference between something that as a deduction in something that is required to be capitalized. Not all rental real estate is a trade or business. 

[Natalie Kolodij]

Originally posted by @Gita Faust:

Keep it SIMPLE

Real estate is a business, not a hobby. 

Anything you pay for a property is deductible. 

Anything you pay for building your real estate venture is deductible.

Gina again there are way more elements to it than this. 

Lots of things related to rentals aren't immediately deductible. Capitalization and Amortization exist and there are very specific tax rules related to them.  

Pleas stop providing vague tax advice that's not correct information. Its' not going to help people who came to BP looking for guidance. 

What you're doing in the books, is not the same as what we're reporting on their taxes. 

[Gita Faust]

Thanks for pointing that out. I did miss it and I just updated it. I am not giving any tax advice in any of my posts. I am merely stating the fact that an investor should organize their financials so they can get tax advice and strategy. 

If you are an investor and renting, you should consider your rentals and manage them as if you are running a business, tax implication could be different. 

I agree 100% with you "What you're doing in the books, is not the same as what we're reporting on their taxes." 

  @Steven Hamilton II @Natalie Kolodij

I am not giving any tax advice, I leave that to the experts. 

[Samantha Smith]

These seem like great questions to ask but without knowing what a good answer is how would you even gain anything by asking? For example, how do you research what classes or credentials they should have taken or should have so that you know what you are looking for in asking these questions?

[Monica Soyemi]

Quote from @Greg B.:

Not all CPA's are the same. I had one CPA that was an older, knowledgeable, nice guy. However he was not real aggressive. I wanted someone like Diane Kennedy.

I found another, more aggressive CPA but he was in another state. Getting feedback from him was difficult.

Last year I found a young, local guy. He asks me good questions and sends me updates about the laws periodically. I like him so far.

 Hey Greg, are you still liking that CPA?