Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 1 year ago on . Most recent reply

User Stats

139
Posts
68
Votes
Curt Bixel
  • Rental Property Investor
  • Columbus OH (columbus, oh)
68
Votes |
139
Posts

Professional Tax Preparation or Not

Curt Bixel
  • Rental Property Investor
  • Columbus OH (columbus, oh)
Posted

For accounting, I use Rentec Direct, which allows me to keep track of all expenses and then prepare reports for all of my properties.

The information the system exports seems like it is most of what is needed to prepare taxes.  I am curious if I should just go ahead and complete my taxes myself or should I continue to have them professionally prepared by a tax attorney.

The reason why I am asking this is because I don't know if I am getting reasonably value out of my current arrangment.  I have 9 rental properties and pay a tax attorney $800 per year to prepare the taxes, but every year it seems that I find a few mistakes like mortgage interest not deducted on one property and insurance not deducted on another.

I had assumed that for $800, someone was spending 4 hours entering my information and going through things to make sure I was getting all the deductions I was entitled to as well as preparing things so as to minimize the chances of an audit.  I am not sure if that is really included in the deal.  

As such, I am trying to figure out if I would be better off getting a copy of turbo tax or something and just doing it myself.  

Any advice would be appreciated.  


Most Popular Reply

User Stats

482
Posts
767
Votes
Matthew Kwan
  • Lender
  • Seattle, WA
767
Votes |
482
Posts
Matthew Kwan
  • Lender
  • Seattle, WA
Replied

I would recommend to use a tax preparation if your rental portfolio starts to scale up like 3+ properties and if you are self-employed with stocks etc. However, avoid using HR Block at all cost!! The experience I had was nothing but terrible, they had zero clue what they were doing and only relied on their software by punching the numbers to prep my tax return.

@Albert Bui @Carlos Valencia

Loading replies...