Accounting fees and Tax filing

[Jared Comeau]

Good afternoon BP.

So I'm still in my education phase of REI, and I just spoke with a CPA about setting up our legal structures and tax structure.

He mentioned that accountant fees are typically $2K/year.

I'm wondering if that sounds about right. If that's the case, in my eyes, someone's first deal would have to basically be a write off, as you'd be paying your yearly income, to claim your yearly income.

Does anyone have any insight into whether those numbers are RIGHT? If so, do you calculate accounting fees into your deal analysis?

[Lance Lvovsky]

There is no such thing as typical fees. A client's structure, type of entities, types of records you keep, etc. dictate fees. Fees can be $1k, $5k, $10k, etc. If you give us a little more info as to what it is he/she is quoting you on, we can tell you whether it is reasonable or not.