How to find a CPA specialized in REI?

Question

We have been using our CPA for over 10 years. We are W-2 and have 1 rental last year. However, I got my real estate license, and have done some transactions this year, and bought two more rentals. I am wondering if we should change CPA. If so, how can I find CPA specialized in REI?

Kelly O'Keefe · Answer

Hi @Lilly Fang,

There are 20+ REI specific tax professionals here who can help if you choose to switch. There is also a "Build your team" drop down above that lists Tax pros associated with BiggerPockets.

If you are beginning to see issues from your current CPA then it may be time to explore a new one. With both of you being W-2 earners it will be hard to claim the real estate professional status, even though you are licensed. The test for REPS is 750 hours and more than half your time. Therefore, If you work 40 hours a week at your W-2 you need 41 in real estate to be substantiated to claim REPS.

You can still claim material participation and there are other deductions based type of rental as well. The best way to find someone who fits your needs for a CPA is to see who is commenting on similar posts, or ask a specific question and see who has the most knowledge in that field. I would also recommend talking to/meeting with 3 professionals or more to see which one is the right fit for you.

Best of luck!

Account Closed · Answer

There are a plethora of tax professionals you can find commenting on the tax forum.

Account Closed · Answer

Hey @Lilly Fang,

Congrats on getting deeper into real estate!

As accountants on BP, we are not allowed to self-promote. To help you in your search: be sure to find an accountant that is willing to grow with you, and is not too high priced fee wise. Not to low either, you don't want to go with someone who is just focused on price as this is a quality of a not so great accountant. Accountants are in such demand, that the best are not even accepting clients half the time.

The other problem I see often with accountants on here is that they specialize in larger investors, and have really high prices when you as a smaller investor do not need all the bells and whistles.

Another thing I see is folks thinking they need to have a tax professional in their state. We as a firm have investors working with us who have rental properties all over the US big and small.

Finding a real estate-focused tax professional and one who can help with advisory and grow with you would be my suggestion to focus your efforts on finding. Best of luck in your search!

Basit Siddiqi · Answer

You may want to see if you can claim real estate professional status now or sometime in the future based on your participation within real estate of being a landlord in addition to being an agent.You may want to have your past couple of returns looked at for review to see if they were done correctly.

Nate Meeker · Answer

@Lilly Fang - Congrats on the leap!Most are moving to a fixed fee, but many still do hourly billing or a mix of both. You could probably expect between $1-4k for qualify service depending on what all services you need. Much more than that in the beginning stages and you might be getting over charged. Always a good idea to get a couple quotes.

Lilly Fang · Answer

Thank you, everyone, for your kind advice. One more question: How do CPAs usually charge the fee?

Randall Tannen · Answer

@Lilly Fang there are a number of competent tax professionals on the forums here. Pick a few and message them to see who will work best with you. Good luck!

How to find a CPA specialized in REI?

Most Popular Reply