Recommendations for CPA in southern California that know STR loophole
Member since 2021 · 5 posts · 6 votes
Recommendations for CPA in southern California that know STR loophole
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Professional · Los Angeles, CA · Member since 2017 · 13 posts · 17 votes
3yI do NOT recommend Amanda Han in California. I called her office, told them I had a tax filing and wanted some help and that my deadline was near. Lot of promise by the woman who answered and promised Amanda would be 'right back' to me. SHE NEVER CALLED. Not a way to treat someone in RE with a deadline
17 Replies
- 3yPeter MckernanBusiness MemberResidential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
Quote from @Oscar Ledezma Vazquez:
Hi,
My wife and I both have a W2 job and purchased a vacation home in big bear, CA in late 2022 that is being used as a short term rental. I am looking for a CPA that knows the STR Loophole and can help us with offsetting our W2 income and is taking new clients. The CPA I been using isn't versed in real estate and isn't aware of the STR loophole.
i also wanted to consult with a CPA, If it's worth doing a cost segregation for our situation and what are the tax implications.
Thanks!
Not a CPA that you need you need a cost Seg company.... CPAs do not do that, you need a cost Seg engineering company that does this.. About 2k-3k a property, but it will offset your taxable income from W2 you do not need to be a real estate professional.
The McKernan Group4.957 Reviews - Real Estate Agent · Seattle, WA · Member since 2019 · 243 posts · 246 votes3y
Quote from @Oscar Ledezma Vazquez:
Hi,
My wife and I both have a W2 job and purchased a vacation home in big bear, CA in late 2022 that is being used as a short term rental. I am looking for a CPA that knows the STR Loophole and can help us with offsetting our W2 income and is taking new clients. The CPA I been using isn't versed in real estate and isn't aware of the STR loophole.
i also wanted to consult with a CPA, If it's worth doing a cost segregation for our situation and what are the tax implications.
Thanks!
Hi Oscar!
There's definitely tradeoffs you'll want to consider & discuss with a CPA about. I've done it a number of times now, and it's been a nice tax break. The guy I work with is based out of California, Tony Hoong. He's the CPA Dude. Has been great & really knowledgeable.
Cheers!
- 3yBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
If the STR that you have is considered an active investment, it would likely be beneficial to get a cost segregation study done.
Basit Siddiqi CPA4.979 Reviews - Member since 2021 · 5 posts · 6 votes3y
Quote from @Eric Yu:
Quote from @Oscar Ledezma Vazquez:
Hi,
My wife and I both have a W2 job and purchased a vacation home in big bear, CA in late 2022 that is being used as a short term rental. I am looking for a CPA that knows the STR Loophole and can help us with offsetting our W2 income and is taking new clients. The CPA I been using isn't versed in real estate and isn't aware of the STR loophole.
i also wanted to consult with a CPA, If it's worth doing a cost segregation for our situation and what are the tax implications.
Thanks!
Hi Oscar!
There's definitely tradeoffs you'll want to consider & discuss with a CPA about. I've done it a number of times now, and it's been a nice tax break. The guy I work with is based out of California, Tony Hoong. He's the CPA Dude. Has been great & really knowledgeable.
Cheers!
Thank you for the recommendation! I reached out to get a quote.
- Member since 2021 · 5 posts · 6 votes3y
Quote from @Basit Siddiqi:
If the STR that you have is considered an active investment, it would likely be beneficial to get a cost segregation study done.
Its defitnetly active! I want to do one so I can use the money to invest in a property that actually cash flows. Unfortunetly Big Bear, CA is not that type of market
- Member since 2021 · 5 posts · 6 votes3y
Quote from @Peter Mckernan:
Quote from @Oscar Ledezma Vazquez:
Hi,
My wife and I both have a W2 job and purchased a vacation home in big bear, CA in late 2022 that is being used as a short term rental. I am looking for a CPA that knows the STR Loophole and can help us with offsetting our W2 income and is taking new clients. The CPA I been using isn't versed in real estate and isn't aware of the STR loophole.
i also wanted to consult with a CPA, If it's worth doing a cost segregation for our situation and what are the tax implications.
Thanks!
Not a CPA that you need you need a cost Seg company.... CPAs do not do that, you need a cost Seg engineering company that does this.. About 2k-3k a property, but it will offset your taxable income from W2 you do not need to be a real estate professional.
I just want to speak with a CPA to see how that will affect our tax situation in the future.
- 3yPeter MckernanBusiness MemberResidential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
Quote from @Oscar Ledezma Vazquez:
Quote from @Peter Mckernan:
Quote from @Oscar Ledezma Vazquez:
Hi,
My wife and I both have a W2 job and purchased a vacation home in big bear, CA in late 2022 that is being used as a short term rental. I am looking for a CPA that knows the STR Loophole and can help us with offsetting our W2 income and is taking new clients. The CPA I been using isn't versed in real estate and isn't aware of the STR loophole.
i also wanted to consult with a CPA, If it's worth doing a cost segregation for our situation and what are the tax implications.
Thanks!
Not a CPA that you need you need a cost Seg company.... CPAs do not do that, you need a cost Seg engineering company that does this.. About 2k-3k a property, but it will offset your taxable income from W2 you do not need to be a real estate professional.
I just want to speak with a CPA to see how that will affect our tax situation in the future.
Amanda Han is a good one to reach out to and is on this platform. She is based in CA. The challenge is that unless your tax pro has all your tax returns and knows what your income and other write offs are then they cannot give you a straight answer. Shoot me a PM I can give you my CPA as well.
The McKernan Group4.957 Reviews - 3yBonnie Griffin KaakePro MemberReal Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votesHi Oscar,
Quote from @Oscar Ledezma Vazquez:
Hi,
My wife and I both have a W2 job and purchased a vacation home in big bear, CA in late 2022 that is being used as a short term rental. I am looking for a CPA that knows the STR Loophole and can help us with offsetting our W2 income and is taking new clients. The CPA I been using isn't versed in real estate and isn't aware of the STR loophole.
i also wanted to consult with a CPA, If it's worth doing a cost segregation for our situation and what are the tax implications.
Thanks!
RE savvy CPAs are not the norm. Doing thousands and thousands of cost segregation studies puts me in contact with these CPAs on a regular basis. Also, keep in mind that most CPAs do their work electronically now. This means that they do not have to be in your state to do a good job for you. They do need to be up-to-date on the nuances of your state taxes.
Short-Term (STR) are a unique niche of the tax laws and require more knowledge. This is not what I would call a "loop-hole" since it is in the tax code as a viable and legal depreciation method. It is just different. Most depreciation schedules are not being done correctly for STR and not catching the tax benefits available or are taking too much straight-line depreciation by putting them on 27.5 year schedules instead of 39 year depreciation schedules.
There are only two ways to off-set your W2 income with STRs. First, you have to actively participate ("material participation") in the management of the property more than any other entity/person, and at least 100 hours/per year. Second, you or your spouse have to qualify as a Real Estate Professional. If you spend more than 2 weeks or 10% of the actual rented days in the property for your personal use, there are additional issues to address with your CPA. If your "rental property" is in another state and you are claiming you materially participate in the management of this property, you may have difficulty convincing the IRS.
To maximize your tax benefits and cash-flow, it is recommended that you do a cost segregation study the first year you purchase the property. Some investors get cost seg estimates on their potential purchases before actually purchasing because the benefits can be very different even if the properties look the same or are at the same price. - Member since 2021 · 5 posts · 6 votes3y
Quote from @Bonnie Griffin Kaake:
Hi Oscar,Quote from @Oscar Ledezma Vazquez:
Hi,
My wife and I both have a W2 job and purchased a vacation home in big bear, CA in late 2022 that is being used as a short term rental. I am looking for a CPA that knows the STR Loophole and can help us with offsetting our W2 income and is taking new clients. The CPA I been using isn't versed in real estate and isn't aware of the STR loophole.
i also wanted to consult with a CPA, If it's worth doing a cost segregation for our situation and what are the tax implications.
Thanks!
RE savvy CPAs are not the norm. Doing thousands and thousands of cost segregation studies puts me in contact with these CPAs on a regular basis. Also, keep in mind that most CPAs do their work electronically now. This means that they do not have to be in your state to do a good job for you. They do need to be up-to-date on the nuances of your state taxes.
Short-Term (STR) are a unique niche of the tax laws and require more knowledge. This is not what I would call a "loop-hole" since it is in the tax code as a viable and legal depreciation method. It is just different. Most depreciation schedules are not being done correctly for STR and not catching the tax benefits available or are taking too much straight-line depreciation by putting them on 27.5 year schedules instead of 39 year depreciation schedules.
There are only two ways to off-set your W2 income with STRs. First, you have to actively participate ("material participation") in the management of the property more than any other entity/person, and at least 100 hours/per year. Second, you or your spouse have to qualify as a Real Estate Professional. If you spend more than 2 weeks or 10% of the actual rented days in the property for your personal use, there are additional issues to address with your CPA. If your "rental property" is in another state and you are claiming you materially participate in the management of this property, you may have difficulty convincing the IRS.
To maximize your tax benefits and cash-flow, it is recommended that you do a cost segregation study the first year you purchase the property. Some investors get cost seg estimates on their potential purchases before actually purchasing because the benefits can be very different even if the properties look the same or are at the same price.Hi @Bonnie Griffin Kaake, I thought there were 7 ways and I had to meet at least one of the seven material participation criteria.
- 1. Spend more than 500 hours on the short term rental business
- 2. Do substantially everything for the STR business
- 3. Spend more than 100 hours on the activity and no one other individual spends more time than you do
- 4. Significant participation activity for more than 100 hours, and your combined activity in all 5. significant participation activities exceeds 500 hours
- 6. Participating in the business for five of the 10 previous taxable years
- 7. Personal service activity (non income-producing) for three of the previous taxable years
- Regular, continuous, provable participation in the business for more than 100 hours
- 3yBonnie Griffin KaakePro MemberReal Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
@Oscar Ledezma Vazquez You are correct, there are 7 ways. The easiest one to meet is #3, the 100 hours. I didn't want to make the post any longer. ;-)
Bonnie
- Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes3y
I recommend Yonah Weiss for cost segs.
https://linktr.ee/yonahweiss - Professional · Los Angeles, CA · Member since 2017 · 13 posts · 17 votes3yI do NOT recommend Amanda Han in California. I called her office, told them I had a tax filing and wanted some help and that my deadline was near. Lot of promise by the woman who answered and promised Amanda would be 'right back' to me. SHE NEVER CALLED. Not a way to treat someone in RE with a deadline
- 2yAmanda HanPro MemberAccountant · Fullerton, CA · Member since 2009 · 139 posts · 68 votesGeorge thanks for your tag here and my apologies if you mis-understood your conversation with my team. Spots for our tax return filing services typically fill up about a year in advance, so we unfortunately are unable to take on last minute prospect requests right before the deadline. Again, my apologies for any miscommunication or misunderstandings that you may have encountered on that part.
Quote from @George P.:
I do NOT recommend Amanda Han in California. I called her office, told them I had a tax filing and wanted some help and that my deadline was near. Lot of promise by the woman who answered and promised Amanda would be 'right back' to me. SHE NEVER CALLED. Not a way to treat someone in RE with a deadline
I do hope you were able to find a great tax advisor that is ideal for you and best wishes to your investing success. - 2yBonnie Griffin KaakePro MemberReal Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
@George P. CPAs/tax professionals are in short supply right now. This especially applies to those that are real estate savvy. Many are not taking new clients and definitely not last minute. This is what @Amanda Han is telling you. I have heard nothing but praises for the work they do. I work with many RE savvy CPAs/tax professionals and you would get the same response from most all of them. Just another reason that investors should not wait until the last minute to get cost segregation studies done or find a new CPA.
- 2yAmanda HanPro MemberAccountant · Fullerton, CA · Member since 2009 · 139 posts · 68 votes
Quote from @Bonnie Griffin Kaake:
@George P. CPAs/tax professionals are in short supply right now. This especially applies to those that are real estate savvy. Many are not taking new clients and definitely not last minute. This is what @Amanda Han is telling you. I have heard nothing but praises for the work they do. I work with many RE savvy CPAs/tax professionals and you would get the same response from most all of them. Just another reason that investors should not wait until the last minute to get cost segregation studies done or find a new CPA.
Thanks for the comment Bonnie! Definitely appreciate all that you do for investors on cost seg as well =)
- Architect · San Diego, CA · Member since 2023 · 10 posts · 8 votes2y
@Oscar Ledezma Vazquez - I've tried a few recommended CPAs from this forum and never got the one on one time I felt I needed. This last tax season I had great service from Nate Meeker The CPA Realtor. I'm planning to stay with him for the long haul. I just hope he doesn't get too big and pass me off to a staff member like all of these other large firms. He is in Temecula, but I just met with him over Google Meet.
- Member since 2019 · 38 posts · 13 votes1y
is he still good? Thanks!
Quote from @Aaron Ohler:
@Oscar Ledezma Vazquez - I've tried a few recommended CPAs from this forum and never got the one on one time I felt I needed. This last tax season I had great service from Nate Meeker The CPA Realtor. I'm planning to stay with him for the long haul. I just hope he doesn't get too big and pass me off to a staff member like all of these other large firms. He is in Temecula, but I just met with him over Google Meet.
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