Any advice on what questions or what to look for into an accountant that specializes in real estate? I keep hearing about how some accountants were able to deduct so much etc etc. I just need to find one. When I speak with an accountant they reassure me that they know how to get the max amount of deductions. but what are some questions I can ask that will let me know that they know what they are talking about.
One of the RE books I read suggested that you should form a team (including accountants) who are also RE investors themselves. Which makes sense because I'm pretty sure they will make themselves aware of any legal ways to maximize the tax benefits.
You live and own investment property in a state without an income tax. This allows you to put your focus on finding an accountant who focuses on real estate taxation instead of an accountant who is familiar with your states income tax laws.
Your profile mentions you did a "BRRRR". Congratulations!
From a tax perspective, you want to focus on the repairs first that make the property habitable. Once the property is habitable, the property can be considered "in service" which allows you to start deducting repairs/depreciation/etc.
There is so much more, but that is a good starting point.
There are many accountants on the message board that focus on real estate taxation. You should interview a couple to see which would be a good fit for you.
I have compiled a list of questions that you can select which are most pertinent to your situation:
What was the most recent CE course you took and when?
What subject is/are your academic degree(s) in?
What is your specialty (tax accounting, tax representation, etc.)
How long have you been practicing?
How many clients do you have?
What percentage of your practice today is in real estate?
Have you represented clients in front of the IRA, and what is your success rate?
Will you share a reference(s) from your current client who runs a business similar to mine?
Will you share a reference who can speak to your representation before the IRA?
How can you or your professional network help me with entity structuring, retirement/estate planning, business analysis, etc.?
Help you define the appropriate business structures, both from a legal protection and from a financial/tax perspective
Help you create a tax strategy for your business that will allow you to legally keep as much money as you possibly can
Help you make smart decisions with respect to your individual real estate investments
Prepare your annual tax returns
Recommend other team members (attorney, insurance agent, real estate agent, etc) who can help make your business a success
What are your credentials?
What services do you offer?
What areas of tax and accounting do you specialize in?
What is your background and do you personally own real estate?
How would I be able to communicate with you? Can I get questions answered by email?
Given my circumstances, what business structure(s) do you recommend? Why?
Can you register the business structures for us?
How can you help in the various phases of real estate investing (acquisition through sale)?
Do you specialize in tax strategy? Specifically geared towards real estate?
How aggressive will you be in helping us keep as much money as possible?
What tax strategies/issues should I be aware of upfront?
How often would you suggest we meet to review our progress/plan?
Do you do tax preparation?
What software do you use (and expect me to use) to do our accounting?
Can you help me find other team members (attorney, insurance agents, real estate agents, etc)?
What is your schedule of fees?
Do you have references?
Some of the questions are duplicated in here for the reason of asking them a different way for a different response.
Also here is a link to another similar discussion we had on this topic (it is some very good reading): http://www.biggerpockets.com/forums/51/topics/63679
@Basit Siddiqi Thank you! 😊
@Steven Hamilton II Thank you! 😊
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