Accounting Business for Real Estate Investors

8 Replies

A wonderful evening to all of you from New England! :-)

I've posted a similar post on a different forum (probably the wrong one) and haven't gotten any feedback so I'm hoping second time is the charm.

I'm a CPA in the State of Maine with 12+ years in public and private accounting sectors. I also cannot get enough information on anything and everything real estate. So then I decided to look into the possibility of opening my own practice and specializing in Real Estate specifically. What would, in your opinion, be the optimal list of services? The 20% that would satisfy 80% of investor needs?

I hope this is an acceptable discussion topic on Bigger Pockets forums.

Thank you in advance for all of your help.

Respectfully,

Elena

Sounds more like a question for a CPA group where you can share new ideas but most people here have limited experience even in real estate. So just knowing the basics and directing them in the the best tax position is helpful. Things like structure, S Corp ownership versus private, LLC versus S Corp, what's best for flip versus long term hold, structuring purchases for max depreciation, cost segregation, and things like these.

@Elena Casey

I don't know exactly what would be the list, but keep looking through the discussion posts.  You'll see the same things come up over and over.  But, these are rather mundane, honestly.  Just a few thoughts:

*just general bookkeeping and accounting services.  many people don't necessarily have the time or skills to do their books

*REI specific tax efficient advice to include business structures, 1031, depreciation, deductions, etc.

*there are some really specific issues that crop up here on BP such as foreign investors and using tax deferred accounts (e.g. self directed IRA's).

Again, that being said... These are things that pop up here.  I don't know what is the bread and butter for CPA and accountants.

Originally posted by @Ed Emmons :

Sounds more like a question for a CPA group where you can share new ideas but most people here have limited experience even in real estate. So just knowing the basics and directing them in the the best tax position is helpful. Things like structure, S Corp ownership versus private, LLC versus S Corp, what's best for flip versus long term hold, structuring purchases for max depreciation, cost segregation, and things like these.

Thank you so very much for your reply! I'm added your suggestions to my list!

 

Originally posted by @David M. :

@Elena Casey

I don't know exactly what would be the list, but keep looking through the discussion posts.  You'll see the same things come up over and over.  But, these are rather mundane, honestly.  Just a few thoughts:

*just general bookkeeping and accounting services.  many people don't necessarily have the time or skills to do their books

*REI specific tax efficient advice to include business structures, 1031, depreciation, deductions, etc.

*there are some really specific issues that crop up here on BP such as foreign investors and using tax deferred accounts (e.g. self directed IRA's).

Again, that being said... These are things that pop up here.  I don't know what is the bread and butter for CPA and accountants.

Wonderful suggestions David! It looks like you've looked through the forums once or twice ;-) I added your suggestions to my list. I appreciate the time you took to reply! It means a lot. 


 

If you were a one-stop shop:

1) 1031s (you need some reserves to do the actual QI)

2) Taking advantage of all tax breaks like cost segregation

3) Providing prop operating reports. Stuff like historical use on utilities, list of near-term CapEx and how to pay for it, anything that is trending the wrong way in operations.

4) If you know enough about property operations, I've told people to make the monthly conversation with the mgr something to the effect of: "What 3 things are we going to do to increase NOI?"

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