out of state rental taxes

[Patrick Mullin]

Hi all,

Me and a partner finally got an offer accepted on 2 SFH. I'm located in Springfield, MO, and the partner and properties are located in the Biloxi, MS region. Given that I'm out of state, I know that I'll likely need to file MS state taxes. Would it be best for me to hire a local CPA in Missouri, or to get my partner to talk to someone in Mississippi.

Also, if we are splitting equity and rental income 50/50, are deductions and depreciation divided up equally? 

Additionally, if anyone has a recommendation for a real estate CPA in Springfield (or even KC/STL) or in the Biloxi area, that would be appreciated. 

[Linda Weygant]

The location of your CPA isn't important.  Many tax professionals run completely virtual firms.  

What is important is their knowledge of taxes associated with your type of investing.  It's not clear if your houses in MS are flips or rentals.  But you'll want to make sure that whoever you go with knows the tax issues associated with it inside and out.  There are several qualified tax professionals on Bigger Pockets.  Your best bet is to reach out to a few and see who you like best.  Ideally, you'd ask your partner to use the same professional for the real estate because having the full picture helps your tax pro to provide you with the best advice