Hey guys I am looking for a real estate tax strategist (CPA)

[Thomas Smith]

Does any other real estate pro’s have any referrals for a Real Estate tax strategist (CPA) in my area Central Valley California or Bay Area ?

[Kory Reynolds]

Originally posted by @Mark S.:

Originally posted by @Caleb Heimsoth:

@Thomas Smith make sure you get a fair deal. It blows my mind that some people spend 5k a year on tax prep for like 3 rentals lol

@Caleb Heimsoth

I think I fall into this category. I work with one of the tax pros on BP. I think he's fantastic, extremely knowledgeable, and definitely knows his stuff regarding REI. I do wonder, however, if I'm paying for a service well beyond my needs at this point.

In my mind, I justify it because I have a quarterly planning call with his firm and am able to talk through any tax questions I have in detail.  I can also email questions any time and there’s no extra charge for that.  

The price went from just under $3K to just under $5K which is still supposedly a substantial discount from what new clients are paying.  

At the moment, I’m single, no kids, W-2 job, have 5 SFRs in my SMLLC that are professionally managed, no other businesses, get about 4-5 K-1s from different syndications/note funds, receive several 1099 INTs from bank and brokerage accounts, HSA, etc.  I also have a couple of international agricultural investments but have not yet received any income from them (but will soon).  I am extremely organized and feel like my situation is pretty straightforward other than the rentals, K-1s, and international investments.  

I know you’re not a tax pro, but what do you think I should be paying?  What do you pay?  

I did talk to a few BP tax pros and most of them either did not want to pursue the relationship due to fear of the international agricultural investment and being unsure of foreign taxation (which I didn’t think would be a big deal) or asked for my previous tax return info and were unable to articulate their value proposition and how they could help me.  There are several I have never spoken with, but the firm I’m with now was able to review a prior year return and tell me how they might have approached a couple things on there differently.  

I just wonder if I need the tax business advisory services I'm paying for, considering my only "business" is my single member LLC with some turnkey rentals in it. People often say that your tax team fees are an "investment" and they should be "saving you" way more than they cost. I guess I'm just having a hard time quantifying it. Again, they do great work, but is it possible to find a competent tax advisor who also does great work and who charges what I would consider to be a more reasonable (in my eyes) fee? That's the question.

Out of curiosity, to all the tax pros out there, what would you charge to work remotely with someone with the above situation?

 Still can't say without actually seeing the return and what foreign issues need to be considered. Foreign will (and should) scare away a lot of preparers - foreign reporting requirements get very complex and the penalty for errors or lack of disclosure is very steep. Frankly, if you have foreign issues, you want to have someone who knows what they are doing and has experience with it. Generally, that comes with a higher price tag, even if everything else is simpler, they don't discount their hourly rates just because some of your work is easier for them.

Sometimes the value proposition is not that they found some missing deduction/credit or election, often it is small stuff, plus having the knowledge to keep you out of trouble.