What tax professional do I need?

Question

Hello,

I'm looking for BP's feedback on what type of tax professional(s) could fit my needs, so that I'm not paying for a professional with all kinds of certifications/education that don't make sense and don't add value for my circumstances.

I have a couple buy and hold rental properties across TN and CT right now and plan to BRRRR my first property in 2019. I'm thinking that I need someone who can help with tax strategy (e.g. 1031s), classifying expenses properly (e.g. improvements vs. repairs/maintenance), can file my taxes, and represent me if I'm audited.

Would a CPA be overkill for my situation? Are there any other tax related services that come to mind that someone in my situation should consider?

Thank you!

Ned Carey · Answer

@Daniel Soovajian  Your situation is relatively complex. you own multiple properties in multiple states outside of your own state and you want tax strategy help!  You want a good CPA that is very familiar with Real Estate.  A CPA is absolutely not overkill. In fact using anything but a good CPA would be foolish.

Since you want strategy help you might want to contact @Brandon Hall. He has somewhat of a unique approach to the CPA business.  He is a popular poster here and has been on at least one podcast

https://www.biggerpockets.com/forums/25/topics/545...

PS I hope I tagged the right Brandon Hall - there are several here

Basit Siddiqi · Answer

@Daniel SoovajianThe barrier to become to become a tax preparer is low. You pretty much just need to apply for a PTIN (preparer tax identification number) which is something you can do online in a matter of minutes.With that said - you want a professional with years of experience and clients with similar tax profiles as you have.Two credentials that you want to look for areEnrolled Agent(EA) - They are required to complete 3 exams on tax plus take continuing education classes every year.CPA - They are required to take 4 exams of which 1 is related to tax. Have a certain amount of college credits with a certain amount related in accounting based on state requirements. Work under a CPA for a certain amount of years plus take continuing education classes every year.With that said - You do have a complex situation considering that you have investment properties in 2 different states other than the state you live in. You may want to interview a couple CPA's/accountant's on this website to see who would be a good fit for you.

Sam Shueh · Answer

CPA

Daniel Soovajian · Answer

Thanks for the helpful responses everyone! Really appreciate it

What tax professional do I need?

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