I just got started myself this year. I talked to a cpa before buying my first but didn’t really need to. Since I’m not opening a LLC or anything like that it just goes on an additional document along with my individual tax forms. I treat it like a business using separate bank and keeping receipts. But your state might be a little different.
Originally posted by @Abel Fermin :
Hello I'm trying to get my feet wet when it comes to investing in rental properties but before I do I would like to consult with a CPA, anyone know one in the Los Angeles Ca area?
I am originally from LA, and I can highly recommend Inna Khayut, CPA at KATZ, KHAYUT & STROLL, LLP
As well as Alan Tsarovsky, CPA, President of www.taxadvisorygroup.com/
Both are knowledgeable about real estate, and very good people. If you end up speaking to them, send my regards. Best of luck!
@Abel Fermin Why do you need a CPA? You're not doing anything yet.
I will agree with the other responders in this post. There are prolly some other items you want to do before needing to communicate with a CPA.
1) You should develop a real estate strategy based on your strengths - Will you be a buy and hold investor, fix and flipper or focus on short-term renting. Then you need to decide on the area that you want to invest in.
2) You should then connect with a real estate agent based on the areas to you decided to invest in.
3) you should also simultaneously connect with a lender to see how much you can qualify to borrow.
Feel free to connect with a CPA when you get close to closing.
If you are still adamant on reaching out to a CPA; you can do the following
1) take the suggestions posted in this thread
2) Attend a local REIA event and network with the professionals in the event and ask who they use for a CPA.
3) create a keyword alert for "Los angeles" and "California" and see who frequently post on threads with these keywords. you will notice some of the same posters. network with these individuals and ask who they use for a CPA.
4) if you are still unable to connect with a CPA locally - feel free to find a CPA who works with clients remotely. There are many on this site that do so.
for your convenience - I also found other posts that requested local CPA's in Los Angeles. Feel free to visit these links for more suggestions.
In the meantime - feel free to reach out to me if you have any specific tax questions.
There are certain tax considerations you may want to think about. If you’re looking at buying property in another state, you may create a tax filing obligation there. The county you buy in may have higher property taxes than another county. You also will likely want to understand the costs included in purchasing and renovating that either get capitalized or deducted or no treatment. You may want to consider liability concerns about forming an entity and the pros and cons to that. It may be prudent to have an estate plan in place If you don’t already. Additionally, you may want to see if you should be making additional estimated tax payments to avoid underpayment penalty. And if you’re anticipating any losses from your rental property you will probably want to ensure you meet the exceptions to be able to deduct them. These are just some considerations you will want to make sure your Cpa is familiar with. Good luck!
Hi Abel. I’m an agent in LA if you need any help on that end. My CPA, who specializes in real estate, is in Chicago but I’ve been using him for years. Happy to connect you.
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