Choosing a tax preparer for multi state investors

[Matt Devincenzo]

I was in the military last year(2012), and recently got out so some important aspects of my residency status will be changing and I'm trying to prepare for those early.

I'm originally from FL and invest there, and being military it has always been considered my home of record for all my income. Now that I'm no longer in the military I have had to change my residency to CA. Since FL is a no income tax state I have only had to file federal tax returns so far. This year I will have to file a federal and a CA state return.

I'm looking for advice from some of the multiple state investors on whether it is better to have a tax preparer in FL that I know, or if I should begin looking for one here in CA. I know from research in past threads that my FL income will end up being taxed here in CA as part of my income, but I'm not sure if I should look for a CA tax preparer who is familiar with CA tax laws since he will be the best authority on claiming all the allowable deductions. Or if a FL CPA will be just as capable of filing my CA state taxes and should just stay with him since I know he is experienced working with REI.

So what have any of you BP multi state investors found when it comes to tax preparation that affects investors working in more than one state.

[Bill Gulley]

I'm not a tax guy but I have the accounting side. Deductions are usually taken in light of the federal return, state taxes usually come from federal tax obligations/returns, so there should be nothing unique about a property in another state unless that state has an income tax, and if so, it's probably a deduction. You probably don't need a CPA, you need a tax accountant in CA where taxes will be due, if there is no return required in FL, it's no issue. The CA accountant can consolidate income from any state, not an issue. :)