All Forum Posts by: Joshua Thompson

Hi Tomoko,

As long as they are an EA, CPA, or attorney that works in the tax field and they have good real estate knowledge I would feel comfortable interviewing them to see if it would be a good fit. Relationships and communication is huge and that's what we try to focus on. If your current accountant isn't a CPA but one of the other two above, you have a good working relationship and they have real estate tax knowledge I would recommend staying there to be honest.

Best of luck!

 Hey James, I wouldn't feel comfortable giving a guaranteed 100% answer to someone on the forums without doing my due diligence on their situation. I would recommend jumping a 30 minutes call with an accountant and invite your financial advisor to discuss this transaction as well as your personal goals and plans for the funds.

You most likely will not have a tax obligation but without knowing your full tax situation we won't be able to say that with 100% certainty. In an ideal world, you'll report the sale of the home on your personal tax return and qualify for the exclusion. At the end of the day, if it all works out, there will be no additional income shown on your tax return, you'll only be reporting the transaction for informational purposes and to prevent a notice.

Zach is correct above, we aren't supposed to promote our businesses. I would recommend contacting a handful of people you see active on the forums and speaking with a few other investors to get a referral. 

Good luck in your search!

 I disagree here. A retroactive application yes would be more work for us but it could make a huge difference for many people. I wouldn't say it's dead, too many other bills they can squeeze it into.

Hey Sean, thank you for posting this! I think many people have heard lately that an extension has been in talks but haven't heard an update. This is a great update! Fingers crossed for retroactive application lol

No problem! Wish you the best of luck! We're happy to help out where we can. 

Hey Mike!

I would say this, if you wanted to find cheaper tax preparation you 100% could but it might cost you more in the form of incorrect tax returns or inflated amounts of tax due. I agree with just about everyone above that the price should be either discussed upfront or in the engagement letter before services began.

It's different to know how much they saved you because tax preparation typically isn't a service to save you taxes, you'll want to meet with them during the year for this. However, some elections and decisions can be made during tax preparation that could benefit you but most clients aren't aware of these small changes that saved them money.

I would say focus on the relationship, if it's a good relationship and you trust them then keep working together. If cost is a big factor which I completely understand during these times, then search around but know finding that real estate-friendly accountant that is in the $1,300 (depending on your situation) range and having a good relationship with them might be difficult to find.

Lastly, ask her if additional services come with that price. 99% of the time the answer is no, but some firms offer free mid-year calls or check-ins for being a tax preparation client.

If you're comfortable reaching out to remote firms contact anyone here in the forums. I believe someone above said they aren't that expensive.

Yes, I've experienced this personally and many clients of ours have as well. By living in NY or having property there you most likely have nexus which requires you to register as a foreign LLC. Every state is a bit different when it comes to determining when nexus is established.

Speak with your attorney to see if it's worth doing this or if it's worth just having that LLC in NY.

This reason is often why it's recommended to set up an LLC in the state of the property. This is not a blanket recommendation for everyone though, each situation can call for a different answer.

Hi Emmanuel!

I would highly recommend two options:

1. Use the above feature "Build Your Team" and find that accountant. Granted sometimes they are remote which isn't an issue. I'm located in Texas as well but we are 100% remote working with clients. Sometimes the best tax professional for you isn't local.

2. Contact a few accountants you see active here in the forms. Typically if they are active in the forms they probably have a good amount of real estate investing tax knowledge.

Good luck and congrats on the new multi-unit!