Where Should my CPA be Located?

Question

Hello BP,I am a new real estate investor living in CA with a property in FL. I have a ton of things going on, and I need to talk with a really good real estate CPA.

Do you recommend I find one in California or Florida? I’ll be filing in CA. Not sure if it would be more beneficial to have someone in FL with more knowledge of Florida real estate, or someone in CA who knows CA tax better.

Jon Schwartz · Answer

Akore Berliner at whodoesyourtaxes.com. She's great. At this point, between my wife and I, we have an S-corp we control, an LLC we control, a property we own, and four K-1's. Akore's fees are suuuuper reasonable; she charges less for less complicated returns. Check her out!

Daniel Hyman · Answer

It really is personal preference. Some clients prefer local, but most folks I have interacted with are totally comfortable in a remote working environment. That is becoming even more magnified given the current environment. The main criteria ought to be industry specialty and personality type IMHO.

Bruce May · Answer

They can live where ever they want. I'm in CA and my CPA is in Ohio. He's also a real estate investor and has real estate clients all over the world. Send me a PM if you want his info.

Andy Eakes · Answer

@Matthew Johnson Hey Matthew. I definitely recommend using an accountant in CA.  They will understand where YOU are coming in relation to your property rather than just your property in relation to you.

Trevor Haney · Answer

@Matthew Johnson

Not sure which one is better, but for California. I started using Roadmap Tax out of San Diego for 2019. Jesse Lipscomb was the main guy. Highly recommend him. He got me all the docs needed to purchase my current spot while in the heat of tax season and found some errors from the previous year's taxes (I went to a random person). Side note: he actually enjoys talking about tax strategy.

Katie L. · Answer

@Matthew Johnson

Definitely recommend a CA based CPA, or at least one familiar with CA taxes.  As a CA resident, you'll have to report all your earnings in CA, which is usually one of the most complicated states, including your FL rental income.  Versus earnings in the other state will only require a nonresident return and report just the earnings in that state but not all your income and deductions.  Plus, FL has no income tax.  :)  I second Akore Berliner as a great CPA, if you need more references in San Diego let me know.

*This post does not create an attorney-client or CPA-client relationship.  Readers are advised to seek professional advice.  The information contained in this post is not to be relied upon.

Bill Hampton · Answer

@Matthew Johnson

There are 20+ accountants on this site that specialize in real estate taxation. Reach out to a few and see who you connect with.

Good luck and let me know if you have any questions.

Matthew Johnson · Answer

@Jon Schwartz

Thanks for your feedback. Makes sense that there probably aren’t too many Florida specific things to worry about.

I’d be interested in checking out your contact. I know that tax can get pretty complicated in the real estate world, but even with that perspective - my situation is pretty complex.

While the cost of a really good cpa might not be justified with just this one property, it’ll be the framework for the rest I plan to acquire.

Jon Schwartz · Answer

@Matthew Johnson, you’re definitely better off with a CA CPA because you’ll be paying state income tax to CA.

Most of the tax benefits associated with real estate are at the federal level, so a CPA from any state will be able to manage those for you.

I have an excellent CPA in San Diego if you’d like a recommendation.

Daniel Kim · Answer

I had the same issue. I was afraid I was going to have to find someone out-of-state just for my out-of-state property and then pay two people. Luckily when I found my local tax guy (who has plenty of rentals himself) and let him know I had to file a form for another state, he let me know that he could do it. Is he an expert in that state's tax code? Probably not as someone local, but he got the job done. I guess it's kind of like an agent or lender who has reciprocity with other states. I guess it would depend on how complicated your Florida situation is though. Hope you find someone good.

Where Should my CPA be Located?

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