fair price for a CPA?

Question

I got a quote for a CPA of 675 to file my tax returns, and this also includes any different tax strategies they would run before formally filing the return, as well as dealing with the IRS in case I ever got audited.  Does this seem like a fair price to people or is it too high?

Natalie Kolodij · Answer

That's an excellent price.

You don't want to step over dollars to pick up pennies.

There was an article published this week about a tax preparer who incorrectly filed returns for years and now her clients owe a combined $1.4 million in taxes following an audit.

Pick a good CPA/EA- They're worth it.

Austin Fruechting · Answer

I don't know how much you have, but that seems pretty reasonable.  I spent ~$5,500 this year!

David Lilley · Answer

@Caleb Heimsoth it's a strategy where you take ownership of a property but keep the previous owners loan in place and agree to pay that loan. E.g. owner is being foreclosed on, you come along with little to no money available to buy the house from him traditionally so you offer to buy the distressed owner's house subject to his existing mortgage.

Caleb Heimsoth · Answer

I just asked them these questions.  What is a subject 2 sale?  I'm not sure I'd qualify for a home office qualification, if I'm using professional property management.

Natalie Kolodij · Answer

Now ask him if he invests in real estate.

Also ask his thoughts on a subject two sale.

Find out his go-to tax treatment for home office qualification for a landlord.

All CPA's know the tax advantages of real estate- Those who specialize in it  often invest themselves, know solid strategies, and can offer a huge benefit to you as you grow your portfolio.

Caleb Heimsoth · Answer

I plan on keeping this one!  He's very knowledgeable.  When we spoke on the phone today he basically gave me a run down on all the tax advantages of owning real estate, and there's quite a few

Caleb Heimsoth · Answer

For some more details, I plan to have two SFR by years end, both out of state.  I will be moving soon, so the texas franchise tax wont matter.  The LLC will be based out of texas anyways. The 675 doesn't include bookkeeping, it only involves filing a tax return and any preliminary work done up to that point.

Vinod Dasani · Answer

Without much details its hard to say.  But generally speaking it does sound reasonable for Corporate Tax Preparation and Filing.  Since you are in Texas they will have to also file Franchise Taxes with the State once a year (assuming its a Corporation).  I assume there are no employees so no Employment Taxes will need to be filed quarterly.  Basically, the fees are based on whether or not the CPA also handles the book keeping\reconciliations of accounts and  they number of properties in the corporation.

fair price for a CPA?

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