Need Tax Advisor/Strategist/CPA in California

Riverside, California
Tax, SDIRAs & Cost Segregation
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Need Tax Advisor/Strategist/CPA in California

Nicole G.
Real Estate Investor · Riverside, CA · Member since 2016 · 5 posts · 1 vote

I really need to find a professional to help strategize the best ways to reduce taxes in addition to preparing taxes. I have several rental properties and I am self-employed as a real estate agent. For example, I didn't know that I could pay into a Self Employment IRA to help reduce the amount of self-employment taxes. Once I asked my accountant about it he said "sure if that's what you want to do." I would really like to find someone who can help me strategize with what different options I have. IRA's, LLCs, 1031...etc

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  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    4y
    Quote from @Nicole G.:

    I really need to find a professional to help strategize the best ways to reduce taxes in addition to preparing taxes. I have several rental properties and I am self-employed as a real estate agent. For example, I didn't know that I could pay into a Self Employment IRA to help reduce the amount of self-employment taxes. Once I asked my accountant about it he said "sure if that's what you want to do." I would really like to find someone who can help me strategize with what different options I have. IRA's, LLCs, 1031...etc


    You are welcome to pm me. I have a couple of referrals for you in Orange County .  

    [email protected]
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  • Bruce D. KowalBusiness Member
    Metro NY + New Bedford · Member since 2022 · 294 posts · 216 votes
    4y
    Quote from @Nicole G.:

    I really need to find a professional to help strategize the best ways to reduce taxes in addition to preparing taxes. I have several rental properties and I am self-employed as a real estate agent. For example, I didn't know that I could pay into a Self Employment IRA to help reduce the amount of self-employment taxes. Once I asked my accountant about it he said "sure if that's what you want to do." I would really like to find someone who can help me strategize with what different options I have. IRA's, LLCs, 1031...etc

    Your CPA's remarks are not entirely out of line. Yes, you can reduce your SE taxes by amounts contributed to your SEP IRA.

    But, here's the thing: you are a young woman. You want to build wealth through the purchase of residential real estate. When you put money in an IRA, it is locked up until your are 59 1/2.

    Now, that is a LONG WAY off!  

    In the meantime, that money could have been used to fund down payments on new properties.  You are literally shooting yourself in the foot, hobbling your pursuit of real estate wealth.  If you were in any other profession, it would make sense.  

    Is your goal to retire on the cash flow from rental properties, or from withdrawals out of your IRA at age 60+?

    A possible alternative, if you love real estate, is to put the money in the SEP IRA, and buy REIT ETF's. They do very well with no management.

    Best REIT ETF's for Q2 2022

    Now, you know . . .

    [email protected]617-704-1194
    Bruce D. Kowal, CPA4.97 Reviews
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