How to find a CPA and not a subscription

Question

my current CPA isn't a real estate guy and isn't comfortable with my STR rentals and tax strategy. I need a CPA who can do my personal taxes and also handle by short-term rental business related tax work. When I told him I was doing a cost segregation study he actually asked me why I need to do it. That I have enough money? Anyway, everybody I call wants to sell me a tax advisory service for thousands of dollars a year. I just want to CPA to do my taxes. If I need advice, I'm happy to pay them by the hour. There are many local firms and then there's lots of national firms. Every time I talk to a national firm in particular, they want thousands to tell me about things I already know about.

advice in finding a cpa? Is a local CPA that says that they do real estate good enough? How do I find one who won't charge me an arm and a leg but is still good?

Basit Siddiqi · Answer

$20,000 tax preparation for someone who has 4 properties does sound like overkill.

The best way to find an accountant who specializes in real estate is through the following spaces
1) Attending a real estate networking event and chatting with other investors with your profile and see who they use
2) Check reviews of accountants and see that specific terms that relate to you are written about. If you have rentals, you likely want to see some of the reviews mention rentals
3) Get some suggestions from real estate related platforms such as biggerpockets.

Some accountants are moving to advisory / subscription based models. However, there are a lot of accounants that are not.
You may just want to interview a couple more until you find one that is a good fit for you.

Stephen P. · Answer

Thanks. I certainly want them to give me advice along the way but everybody I've called so far makes me go through a huge analysis..  then they try and sell me a $3,000 to 20,000, yes $20,000, subscription to ongoing advice. I really just want my taxes done. If they have proactive things to do along the way, they can build that into the cost for the taxes or charge me by the hour. Making these appointments and going through the whole analysis feels like when you go to a car dealership and they keep you there as long as they can so you just say forget it just do it.  I have other consultants for some of the tax opportunities and I just don't want to keep stacking things.

I only have four properties at the moment. 200 sounds like a whole thing. I would feel like I had to hire somebody full time for that. But I'm not in that League. I just want someone who, when I bring them the form for my tax segregation knows exactly how to plug it in and encourages me, rather than discourages me to use the avenues that are available to me to save taxes.

Fulton Abraham Sanchez · Answer

@Stephen P., hi. Local versus national matters less than actual STR experience. Ask prospective CPAs how they handle material participation, average-stay rules, cost segregation, bonus depreciation, passive-loss limitations, and Schedule E versus Schedule C.

Request a fixed quote for tax preparation and an hourly rate for occasional planning. A good CPA should review your cost segregation study, explain how the deductions apply to your situation, and tell you when advice is actually needed.

Ashish Acharya · Answer

@Stephen P. The fact that your current CPA questioned why you'd bother with cost segregation is actually a useful signal, that reaction tells you he's thinking about it as an expense rather than as a depreciation acceleration tool, which suggests he may not be tracking things like your STR's Schedule C vs. E classification, material participation status, or how bonus depreciation phases down each year, all of which directly affect whether cost seg is worth doing for your specific situation.

On "local vs. national" and "does real estate" claim, the honest answer is that "does real estate" on a website doesn't tell you much, ask specific questions when vetting someone: how do they determine Schedule C vs. E for an STR, what's their approach to material participation documentation, have they actually filed a return with a cost segregation study on it, and do they know the average-stay rules that determine STR classification in the first place. Someone who can answer those specifically, without reflexively steering you into a retainer package, is a much better signal than firm size or geography.

Michael Swan · Answer

Dan Kaminsky doesn't charge me a lot per apartment complex, so your 4 rental properties and personal taxes I would think would not be much.  He know the RE stuff too, that's why I use him.

Tell him Swanny said to contact him!!

Stephen P. · Answer

There was a list on bigger pockets.. they all wanted me to schedule an appt then I find out each is a subscription.

Bill Hampton · Answer

@stephen p.

I recommend finding an accountant who specializes in real estate taxation and is proactive instead of reactive when providing advice.

Working remotely with your accountant will expand your options. The best person for the job may not be local.

I would also recommend looking for an accountant who will work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

Happy to answer any questions. Good luck.

Jacob Camhi · Answer

i hear you, it's frustrating when you just need a tax preparer and everyone tries to sell you a big advisory package. for your short-term rentals and cost segregation, a local cpa who specializes in real estate is usually a good bet. look for smaller, established firms in your area that specifically mention real estate or investment properties on their website. when you call, ask directly if they prepare taxes for clients with short-term rentals, specifically mention cost segregation studies, and if they have experience with real estate professional status rules. you're looking for someone who prepares the returns, not necessarily someone who needs to teach you the strategy. most good ones will charge by the hour for specific questions, not a recurring advisory fee.

How to find a CPA and not a subscription

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