Fair Price for CPA to do taxes

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Fair Price for CPA to do taxes

Tom Gorrell
Fullerton, CA · Member since 2017 · 21 posts · 13 votes

I love my CPA just wondering about what a fair price is for a CPA to do our taxes. Perhaps my current firm at $6,000 is a little more suited for people with a bigger portfolio.

We have 4 rentals. 

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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
1y

I self manage 29 SFR and do all my taxes on turbo tax. It's definitely not rocket science to do. lol

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  • Max Ferguson
    Real Estate Broker · Denver/Castle Pines/Colorado Springs, CO · Member since 2021 · 248 posts · 136 votes
    1y

    Can't imagine how it would cost 6k for only 4 rentals unless you have other businesses, and each one is in a different LLC...but also not sure.

    This is such a personal question no one can really answer it for you, call around to your local CPA's and compare. But yeah, sounds high. 

    1Reply
  • Tom Gorrell
    OP
    Fullerton, CA · Member since 2017 · 21 posts · 13 votes
    1y

    Thanks  Max

    0Reply
  • Landon Mizuguchi
    Member since 2023 · 103 posts · 19 votes
    1y
    Quote from @Tom Gorrell:

    I love my CPA just wondering about what a fair price is for a CPA to do our taxes. Perhaps my current firm at $6,000 is a little more suited for people with a bigger portfolio.

    We have 4 rentals. 

    This might make sense depending on size of rentals and # of LLCs that are required to file - need more info to help. 
    0Reply
  • Tom Gorrell
    OP
    Fullerton, CA · Member since 2017 · 21 posts · 13 votes
    1y

    We have 3 rentals in CA and one in Kentucky (total value about 2.5 M)

    some W2 income

    some pension income

    some syndication income and some from a business (s corp) 

    1Reply
  • Tom Gorrell
    OP
    Fullerton, CA · Member since 2017 · 21 posts · 13 votes
    1y

    If this looks too high to you- I would appreciate estimated fair price costs from anyone with an opinion

    0Reply
  • Sean O'KeefePro Member
    CPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votes
    1y
    Quote from @Tom Gorrell:

    We have 3 rentals in CA and one in Kentucky (total value about 2.5 M)

    some W2 income

    some pension income

    some syndication income and some from a business (s corp) 

    Based on what you say, it feels like $3k - $4k but would need more info on how frequently you meet with CPA outside of Jan - Apr when you are filing and if this includes tax strategy. 

    If they're responsive and know how to save you $ on taxes sometimes the premium price pays for itself. 
    [email protected]628-241-0888
    4Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    Everyone’s situation is different, probably every year. 

    For me in 2023:

    No LLC's, 12 properties in 2 states, only 1 state income tax, no w-2's, a pension and a 1031 exchange.

    I was charged $1,275, up from 2022 when I was charged  $1,175 but didn’t have an exchange. They already have my records from the previous year(s), I’ve been a client for 20+ years, and I provide pretty detailed reports per property. All of which may factor in. 

    I also only reach out once or twice a year for hypothetical advice.  If I sold this, or bought that could I do this or that, and what would I owe. 

    5Reply
  • Tom Gorrell
    OP
    Fullerton, CA · Member since 2017 · 21 posts · 13 votes
    1y

    Thank you Bill. I appreciate your insight.

    2Reply
  • Tom Gorrell
    OP
    Fullerton, CA · Member since 2017 · 21 posts · 13 votes
    1y
    Quote from @Sean O'Keefe:
    Quote from @Tom Gorrell:

    We have 3 rentals in CA and one in Kentucky (total value about 2.5 M)

    some W2 income

    some pension income

    some syndication income and some from a business (s corp) 

    Based on what you say, it feels like $3k - $4k but would need more info on how frequently you meet with CPA outside of Jan - Apr when you are filing and if this includes tax strategy. 

    If they're responsive and know how to save you $ on taxes sometimes the premium price pays for itself. 

     Thank you Sean!

    1Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    1y

    I self manage 29 SFR and do all my taxes on turbo tax. It's definitely not rocket science to do. lol

    5Reply
  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    1y
    Quote from @Tom Gorrell:

    We have 3 rentals in CA and one in Kentucky (total value about 2.5 M)

    some W2 income

    some pension income

    some syndication income and some from a business (s corp) 

     @Tom Gorrell

    If they are providing tax planning and/or bookkeeping with the tax prep, then the price is reasonable. 

    You may want to speak with other real estate accountants if you're not happy with your current one.

    Good luck.

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
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    0Reply
  • Account Closed
    Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
    1y
    Quote from @Tom Gorrell:

    I love my CPA just wondering about what a fair price is for a CPA to do our taxes. Perhaps my current firm at $6,000 is a little more suited for people with a bigger portfolio.

    We have 4 rentals. 

    I’m sure it’s location specific but $6,000 sounds way too much. We have 17 rentals and it’s less than $3,000 here in Texas. 
    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    1y
    Quote from @Account Closed:
    Quote from @Tom Gorrell:

    I love my CPA just wondering about what a fair price is for a CPA to do our taxes. Perhaps my current firm at $6,000 is a little more suited for people with a bigger portfolio.

    We have 4 rentals. 

    I’m sure it’s location specific but $6,000 sounds way too much. We have 17 rentals and it’s less than $3,000 here in Texas. 

     That's phenomenal for a real estate focused CPA on such amount of rentals. 

    0Reply
  • Account Closed
    Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
    1y
    Quote from @V.G Jason:
    Quote from @Account Closed:
    Quote from @Tom Gorrell:

    I love my CPA just wondering about what a fair price is for a CPA to do our taxes. Perhaps my current firm at $6,000 is a little more suited for people with a bigger portfolio.

    We have 4 rentals. 

    I’m sure it’s location specific but $6,000 sounds way too much. We have 17 rentals and it’s less than $3,000 here in Texas. 

     That's phenomenal for a real estate focused CPA on such amount of rentals. 

    And they fought/and won a dispute with the IRS for us a couple of years ago that was down right scary and they never charged us for the dispute.
    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    1y

    I think a good tax person is worth their cost.  The amount saved can dwarf $6k.  To be blunt i do not know what my guy charges.  What i do know is i will convert $300k to roth at an estimated 23% fed this year.  What is that worth?   Lots of variables on that one, but more than a $6k charge.  Quite a few things go into making that happen.   In my case it was not as simple as wake up and do it.   Accelerated depreciation, taxable income forecasts, and running various numbers/scenarios.

    Point is that tax planning/financial planning is not the area to skimp.   


    good luck

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    A couple factors that come into play when assessing cost:

    1. Complexity of return (many things such as # of states, # of properties, 1031 exchanges, etc)

    2. Bookkeeping records (if they're worse, they'll charge more). 

    3. # of times you talk with your CPA/tax planning (generally tax planning is going to cost more)

    It depends on the CPA, location, etc. I feel like $6k is a lot if it's just the tax return. However, if you're getting tax planning/strategy calls, I feel like it's not a drastic overpay. The cost of the right advisor initially is a lot less in the long when you pick a bad advisor. Often times, cheap is expensive!

    [email protected]
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    1Reply
  • Brad HuntonPro Member
    Rental Property Investor · Granbury, TX · Member since 2020 · 84 posts · 70 votes
    1y
    Quote from @Account Closed:
    Quote from @Tom Gorrell:

    I love my CPA just wondering about what a fair price is for a CPA to do our taxes. Perhaps my current firm at $6,000 is a little more suited for people with a bigger portfolio.

    We have 4 rentals. 

    I’m sure it’s location specific but $6,000 sounds way too much. We have 17 rentals and it’s less than $3,000 here in Texas. 

     I am also in Texas with 16 rentals and was charged around $2,000 with two different tax planning meetings throughout the year.

    0Reply
  • Samuel RichardsonPro Member
    Member since 2024 · 11 posts · 12 votes
    1y
    Quote from @Aaron Zimmerman:

    A couple factors that come into play when assessing cost:

    1. Complexity of return (many things such as # of states, # of properties, 1031 exchanges, etc)

    2. Bookkeeping records (if they're worse, they'll charge more). 

    3. # of times you talk with your CPA/tax planning (generally tax planning is going to cost more)

    It depends on the CPA, location, etc. I feel like $6k is a lot if it's just the tax return. However, if you're getting tax planning/strategy calls, I feel like it's not a drastic overpay. The cost of the right advisor initially is a lot less in the long when you pick a bad advisor. Often times, cheap is expensive!

    I am a CPA and I agree with Aaron’s assessment, however $6k sounds high, but don’t know the details of how complex and ancillary services.
    1Reply
  • Tom Gorrell
    OP
    Fullerton, CA · Member since 2017 · 21 posts · 13 votes
    1y

    I really appreciate all the input. Thanks all who have weighed in. 

    0Reply
  • Brandon Sarrett
    Member since 2022 · 12 posts · 3 votes
    1y

    It is my understanding that a CPA is only responsible for making sure you follow all the laws when filing taxes, but there is another role that is responsible for tax strategy and focuses on tax savings.  Is this true? 

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    OP do you do the bookkeeping or the accountant?  Do you turn in clean PLs on each property?  Same for fixed assets.  

    Does your CPA want to get rid of you?  Most service or trades people us included increase the rates for customers we don’t want.  

    Hopefully you’re a great client.  

    2Reply
  • Tom Gorrell
    OP
    Fullerton, CA · Member since 2017 · 21 posts · 13 votes
    1y

    Good question Henry. I think we are decent at bookkeeping- but have areas we can improve on. I will ask if there would be a discount for better accounting on my part. 

    0Reply
  • Kevin Gonzalez
    Accountant · Palm Springs, CA · Member since 2024 · 8 posts · 8 votes
    1y
    Quote from @Tom Gorrell:

    Good question Henry. I think we are decent at bookkeeping- but have areas we can improve on. I will ask if there would be a discount for better accounting on my part. 


     Are you getting any value out of your CPA relationship besides getting your tax forms filed on April 15th? Some of us are business minded and strive to add value beyond basic compliance and planning (which it doesn't even sound like you're getting planning here).

    0Reply
  • Craig Janet
    Member since 2019 · 223 posts · 261 votes
    1y

    CPA's usually charge by the hour $100-$200. Do you think that one person is working an entire week or two just on your tax return?

    What records are you keeping throughout the year?

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    1y

    At first glance, it appears that the price you are paying it high.

    However, it will depent on several factors - How many states are the syndications invested in? The syndications might be invested in multiple states which will require multiple state return filings which add to costs.

    Are you getting any consulting throughout the year?
    He is also doing the bookkeeping?

    You may want to get a couple of quotes.
    Best of luck to you!

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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    0Reply
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