CPA fee for two unit

[Jay Bob]

I'm a new investor. Just closed on my first deal on 11/27/19. The property is two units. I'm renting the first floor and living on the second floor. I was recommended to a CPA who is charging $500 to file my tax return.

Do you think the CPA is charging too much? Thank you for your input.

[Eamonn McElroy]

CPA fees internalize many factors.  Among them:

-Regional cost of living

-Firm overhead

-Knowledge level

-Proprietary resources and strategy

-Timeliness of communication

-Ability to execute

A better question is: "Do you think the CPA is charging too much for the value he/she is going to provide" which we won't be able to answer.

That said, I would think a $500 compliance fee for three income tax returns (federal, state, and local), placing a rental RE asset in service, and doing a proration of expenses is on the low-middle end of the spectrum.