EA OR CPA Whats the best in your opinion?

Question

I've never hired an EA or CPA before and need advice on vetting them to avoid being taken advantage of. I feel capable of handling my accounting in general, but I primarily need help with taxes for my real estate and small investments. I want the best professional who can save me the most money, someone who’s real and honest and doesn’t use too many big words. I’m a huge fan of keeping things simple since it takes me longer to understand complex topics, especially taxes. What should I watch out for, and is there a significant advantage to choosing an EA over a CPA?

Michael Plaks · Answer

@Joshua Thompson already linked the long post that I wrote to answer your question:https://www.biggerpockets.com/forums/51/topics/1215989-expla...

Based on your subsequent comments, you missed the point of my post: it DOES NOT matter whether your accountant holds a CPA or an EA designation (or neither of those two). What matters is their competence in real estate taxation and their approach to business.

Joshua Thompson · Answer

There is a GREAT post regarding that here. https://www.biggerpockets.com/forums/51/topics/1215989-expla...

At the end of the day the EA and CPA are interchangeable in the tax field, the most important thing is they understand real estate and it's tax implications. I've met some VERY smart CPA's with 3-4 years in the business and I've met some "not so smart" CPA's with 20+ years.

Rachel Mazzanti · Answer

I would choose experience over credentials anydays.

Sean O'Keefe · Answer

CPA, but I should disclose that I might be biased on this :)

Sean Graham · Answer

Experience + fit > credentials

Kylie A. · Answer

haha what states u work in bc I'm in Oregon

Simon W. · Answer

EAs aren't going to focus on auditing and planning. They are strictly taxation.

If you are setting up a trust, you should get a CPA.

Find a bookkeeper for your daily driver, if you find one that focuses on real estate, then during year-end your CPA won't charge you an arm and a leg. There are plenty of us on BP just reach out to a few and review their posts and just talk to them if they are open to new clients.

Markus Shobe · Answer

Both can be a good choice. Just make sure that they understand real estate inside and out.

Bill Hampton · Answer

@Kylie A.

You came to the right place. A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

I recommend finding an accountant who specializes in real estate taxation and tax planning.

You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

There are over 20 real estate accountants on this site. Reach out to a few, see who you like and see if they are accepting new clients. We are not allowed to solicit clients.

Ask your potential accountant do they own real estate, do they have clients that own real estate, and how many years of experience do they have.

Good luck.

Kylie A. · Answer

thanks for that i see ur a cpa imma shoot u a dm

EA OR CPA Whats the best in your opinion?

Most Popular Reply