How Important is it that Tax CPA Specializes in RE?

[Nicole Sparkman]

Hi there! 

We're considering switching Tax CPAs this year; we'd like someone to provide proactive tax advice in addition to standard tax filing. We have both a flipping business (typical LLC) and a rental business (series LLC), and currently own five single-family rentals. Future target is to grow rental company to 30 rentals and we want a CPA that can provide situational recommendations as we increase in size.

Would appreciate 1) thoughts on whether it is 100% recommended to use only Tax CPAs that specialize in real estate (e.g. vs. a family friend who owns a general tax business) and 2) any recommendations on real estate CPAs that can provide tax services and proactive advice for the state of Texas.

Any info / advice would be very much appreciated! 

Cheers,

N 

[Daniel Hyman]

@Nicole Sparkman

We get this question all the time. My answer is usually something like this:

For someone who was gifted or inherited a small property (or even someone who actively purchased a rental but is not looking to grow the portfolio) the switching cost to a new CPA may not be worth it. Stick with the familiar family tax preparer. (That does not sound like your scenario.)

However, for someone who is looking to grow in this industry (as you clearly are) then it is absolutely imperative to work with a real estate specialist. The tax code is highly nuanced for real estate investors.