CPA question for taxes

[Teresa Thomas]

My husband and I are just starting out in real estate investing, we have done a ton of reading and listening to this podcast. We recently spoke with a CPA who said she has 24 years experience, but doesn’t specialize in real estate, however has a handful of clients who do own investment property. She made this statement: you want to have some properties that are winners and some that are losers when it comes to your taxes, to balance it out.

Is this a valid statement? Wouldn’t we want all of our properties to produce cash flow?

[Michael Plaks]

@Teresa Thomas

Cannot agree with your CPA as quoted. You do not buy properties for tax consideration, period. You buy them for appreciation and for cash flow, and all of them should be winners in that respect. 

If they happen to save you taxes - it's an icing on the cake. We real estate accountants can help you minimize taxes, but we won't tell you to buy (or not buy) a particular property out of tax consideration.