All Forum Posts by: Ahad Ali

Hi Fernando,

You may look into CPA firms outside of your state. There are plenty of remote firms which can provide you with the service.

Hello,

There are plenty of experienced CPA on this forum who may be able to help you, either remotely or in person. I would recommend to speak to multiple CPA before proceeding with one.

It may help if you provide more information about what you need assistance with.

 This answer hits the nail on the head.

Mainly the rule that you must meet BOTH requirements.

If you current savings are not enough.

A side hustle is great source of income as others mentioned.

But You can also potentially buy a property out of state for much cheaper that can generate cash flow.

This can supplement your income and hep you save faster.

As others mentioned this forum is great when it comes to looking for recommendation for professionals. 

Also feel free to speak to some of them to get a better sense of expectations before you fully sign up.

Lastly they do not necessarily have to be local. 

 I always suggest keep track of rental related expenditure so during tax time it's easy. Maybe a separate credit or debit card just for that property can also help.

You may also want to schedule a consult with a CPA to get some specific questions answered so your prepared from the start and don't need to scramble during tax time.  

Ideally it would be better if you wait another 6 months to hit the 2 years grace period before moving out to be eligible for tax cut on the capital gains. Ultimately you would want to speak with a CPA who is specialized in Real Estate. They would be able to go over more details and recommend you how to minimize taxes on capital gains. 

The previous posts have already mentioned a lot of good practices that can be done to help out not only your tax preparer but yourself.

1) Clear records financial statements like income and expenses categorized, Balance Sheets, etc. 

2) Tax Documents and other crucial documents such as closing disclosures, sale of property etc. being maintained and presented accurately for the respective properties. Do not submit unnecessary documents such as minor, consistent receipts. Tax preparers primarily will not need the proof behind the expenses to report if they are just doing the taxes. That is more so utilized in the events where you need to validate the transactions such as an audit.
3) Being involved and understanding what is going on between the properties to be able to answer any questions or concerns that may rise.

As mentioned by others as well, this ultimately depends on the CPA you are working with. Everyone has their own style and preferences to how they operate and may prefer a more hands on approach while others may like to may the process as streamlined as possible.

You can always ask what the CPA would prefer to have a clear idea.

You can put the property you are interested in into an LLC which will provide the legal protections. It may not be necessary of course depending on the scenario but will not hurt to do so regardless. Bear in mind you will be subject to paying the taxes as the member of the LLC and may need to file separate state returns to report the income source accordingly (depending on where the properties are located)

I would advise to speak to a lawyer or CPA who is familiar/specializes in real estate before diving in to make sure all of your questions are answered. While this forum is an amazing source of information, it is typically general information and you will not get tailored advice properly unless speaking with a professional who can take all of your information and assess before providing any input.

Hi @Jeremy Wehrly

You can browse around this forum for a lot of CPA's who can assist you. They are well versed with rental properties and surely can offer you the best advice and service. Most of them are also able to work with you remotely without any issues. It is suggested to speak with multiple CPAs before settling to find one you feel would work along with you best. Good Luck!