They provide peace of mind knowing that your taxes are prepared correctly and can defend your filings if questioned.Benefits of a CPA for High-Income IndividualsTax Planning: CPAs do more than just prepare your taxes; they can offer year-round tax planning advice to help reduce your tax liability through strategic decisions about investments, deductions, and other financial moves.Customized Advice: A CPA can provide tailored advice based on your specific financial goals and life situation, such as planning for a child’s education, buying or selling real estate, or planning for retirement.Decision FactorsCost vs.

From the real estate you are going to be getting Passive Activity Losses (PALs) which is depreciation to offset passive income, potentially reducing your overall tax liability.

This sounds like a huge liability risk! 

Put in LLC so you can realize the benefits and have the protection of the LLC when liability comes your way 

LLCs are commonly used for asset protection, helping to protect personal assets from property liabilities.

We had $1M liability already and I filed a screenshot of the 2023 earnings summary.

There may be other things I'm unaware of that come into play as well- taxes, liability laws, etc.  

Obviously, since this is BP, someone who also knows good strategies for minimizing tax liabilities with relation to real estate investing as well.  

Crunching rough numbers you need a significant percentage of depreciation in that first year to offset not only your tax liability but also the income of the property. 

@Ashish Acharya @Michael PlaksAshish correctly points out that LPs are subject to more specific rules, however the courts have found that a limited liability company (LLC) interest is not treated as a limited partnership interest.