Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
I am trying to figure out this difference between these two pros. I saw a Youtube video about this topic. I am also concerned my CPA may not have enough knowledge how to save me the most in taxes, and or educate me on how to structure my entities properly.
What is the difference between these pros. I know CPAs are licensed but about about Tax Strategists? Im also looking for a new tax pro in my area if anyone is in Massachusetts.
Rental Property Investor · Worcester, MA · Member since 2018 · 131 posts · 135 votes
3y
@Rich Hupper I'm in the exact same boat, also in Massachusetts. Have had the same CPA for years and he has been fine, but doesn't try to help me save.
I heard something on a podcast recently that really stuck with me, something along the lines of "there are 2 types of CPA's, ones that work for you, and ones that work for the IRS." With mine it feels like the latter. It feels like all he is concerned with is proper filing, when I ask questions about ways to save he usually shrugs them off. I recently asked him his thoughts on doing a cost seg study and he didn't even know what it was.
I'm looking for a new CPA more real estate specialized in Massachusetts as well. Let me know if you find soneone you like and I'll do the same!
Accountant · Edina, MN · Member since 2020 · 172 posts · 97 votes
3y
Transactions vs. Relationships. Tax Strategists, when done correctly, are about relationships and will work with you year round. Tax Preparers and CPAs/EAs stuck in the traditional way of doing business will meet with you once a year and tell you what you owe. We started our business in Boston and have a few connections still in the area. Would be happy to touch base.
What I noticed is that you posted your question 3 months ago stating you were looking, and you got a lot of good feedback and a link to BP directory of tax pros. Yet, 3 months later, you're still stating that you need a new strategist. Apparently not much progress in 3 months.
Now is mid-year, and many of us are not taking new clients for this year anymore. Your choices are dwindling the longer you wait. You might have to either settle for whoever is still available or wait until late in the year to start looking for next year's switch.
Here're several older threads that may be helpful.
Transactions vs. Relationships. Tax Strategists, when done correctly, are about relationships and will work with you year round. Tax Preparers and CPAs/EAs stuck in the traditional way of doing business will meet with you once a year and tell you what you owe. We started our business in Boston and have a few connections still in the area. Would be happy to touch base.
Thank you for helping me better understand the difference here.
Thank you for helping me better understand the difference here.
An unpopular opinion: I don't think this helps you understand the difference.
CPAs and EAs are licenses in tax law. In this post https://www.biggerpockets.com/... I gave an overview of the various designations (scroll down to my comment on that post).
"Tax strategist" as an informal title that we self-award. Same as "guru", "expert", "consultant", "advisor", and anything else that implies expertise. It's meant to convey that the person provides proactive strategic planning.
In reality, it means nothing. Some people who call themselves strategists are nothing other than tax preparers. Others truly are strategists. You cannot tell by the label, just like you cannot tell it for any other label I mentioned above. There's no formal vetting. Anybody can call themselves a strategist.