Do I Need to Hire a Real Estate CPA?

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Do I Need to Hire a Real Estate CPA?

Christine I.
Member since 2022 · 49 posts · 13 votes

My CPA of 7 years retired. He is a nice local guy who acted kind of as my security blanket as I could run anything by him and he always took his time explaining. My husband who was the brains of the operation became incapacitated  and has since passed but I was able to take over control of our multiple long term rentals and keep things going for these last few years. CPA was not specialized in real estate but very competent and got me through some difficult issues.  Am I now better off looking for a CPA who specializes in real estate? What would a specialized CPA bring to the table that I can't get otherwise?

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  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    Sorry for your loss. I do think this would be a more appropriate time to switch to someone who’s more specialized. I’d recommend looking around on BP and connect with CPAs that are well respected. Best of luck in your search. 

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    4y

    Sorry to hear about your loss - 

    One thing you may want to look at is whether there was a 'step-up in basis' after your husband passed away.
    The result would have been an increase in depreciation for you.

    If you worked with a CPA who does not specialize in real estate, it may have been missed.
    You would also want to see if the prior couple of returns were accurately prepared. If they were not, it may be an opportunity to amend your tax returns.

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  • Christine I.
    OP
    Member since 2022 · 49 posts · 13 votes
    4y
    Quote from @Basit Siddiqi:

    Sorry to hear about your loss - 

    One thing you may want to look at is whether there was a 'step-up in basis' after your husband passed away.
    The result would have been an increase in depreciation for you.

    If you worked with a CPA who does not specialize in real estate, it may have been missed.
    You would also want to see if the prior couple of returns were accurately prepared. If they were not, it may be an opportunity to amend your tax returns.

    @Basit Siddiqi I'm very aware of the step-up basis which makes a huge difference in my life. I've already turned the past two years of my tax returns over to the new accountant that I hired who I'm told has a lot of experience working with RE investors. Am also preparing to do Form 706 and split the trust. I had to get all property appraised. Who knew how expensive that would be. One of my main concerns is the fear of people taking advantage of me. The financial and legal aspects are complicated and I don't always understand everything. So right now I have a financial expert on my side, a new attorney who will help me make decisions about how to fund both trusts and a new CPA who hopefully will keep me on the straight and narrow with my taxes. Lots of people looking over my shoulders

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