Consultant to maximize earnings on retail front?

Question

My dad owns a corner property with a kwanzaa hut styled building in Ontario, CA. He has 4 small retail units rented and a fairly large area behind the shop that is unused. My dad still takes checks as payment and has had the same CPA doing his taxes for 35 years (property is paid off). Would it be worth it to hire a tax strategist or a consultant to come and see if we can maximize his tax savings? Is that a thing?

David Lyons · Answer

There are definitely tax experts who do that.   And most CPA's aren't savvy enough in tax strategies specific to Real Estate to be able to do that.  Find a tax strategist and/or CPA who specializes in Real Estate and specifically tax strategy for their clients.

Carini Rochester · Answer

Hiring a professional to help reduce tax liability is definitely 'a thing.' A good CPA should be able to help. His CPA maybe isn't doing it because your dad hasn't asked him to. There are other financial planner professionals as well. Depending on how old your dad is, or what his health condition is like, planning specific to retaining wealth through old age/nursing home, etc. might also make sense. Some of these professionals would be experts in that specific specialty. If the plan is that he wants you (your siblings) to inherit this property, then he should make sure all that planning is done well and correctly.

Basit Siddiqi · Answer

@Trevor Smith

Are you asking for help on how to increase earnings from the property or to maximize tax benefits?If you are looking to increase earnings - Speak to a couple of real estate agents / professionals on the following topics1) Are you collecting the proper amount of rent on the currently rented units. If they are below fair market value, can you increase the rent in the future?2) What will it take to get your un-rented united to become rented.Tax thoughtsHow long has he owned this property?If he owned the property for as long as he had his accountant(35 years), then the property is likely fully depreciated and also run out of interest expense eligibility(unless there is an improvement).There are some benefits of having someone who specializes in real estate to review the return to make sure it was done properly.Best of luck!

Trevor Smith · Answer

Thank you both. We'll look for a CPA that specializes in real estate.

Consultant to maximize earnings on retail front?

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