EXPLAINED: How to find a CPA focused on real estate

Tax, SDIRAs & Cost Segregation
1yFollow

EXPLAINED: How to find a CPA focused on real estate

Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes

Tis the season. End of the year. The season of Bigger Pockets investors posting 10 nearly identical "Looking for a CPA" messages per day.

Disclosure: I am one of those people you are looking for. But this post is not about me.

1. CPA vs EA vs Tax strategist and so forth.

Long story short: it doesn't really matter. We all do the same thing, we just call ourselves different names and carry similar but different licenses:

- CPA - Certified Public Accountant
- EA - Enrolled Agent
- Accountant
- Tax advisor
- Tax strategist
- Tax consultant
- Tax planner

It all means basically the same. If you care to learn about the distinctions, read these posts:
https://www.biggerpockets.com/forums/517/topics/1215989-expl...
https://www.biggerpockets.com/forums/51-tax-legal-issues-con...


2. What does matter, then?

Here's what matters:

1. Do they know real estate business and real estate taxation?
2. Do they provide good service, however you define it?
3. Are you compatible?

As far as checking your accountant's technical competence, you can use this old but still applicable questionnaire:
https://www.biggerpockets.com/forums/51/topics/792277-how-to...

Other questions that you may want to ask are listed in this post:
https://www.biggerpockets.com/forums/51/topics/795929-questi...


3. I want a CPA who is also an investor!

There's a common belief that your tax person should also be an investor themselves. I personally find it ridiculous.

If we adopt this mentality, then all OB/GYN doctors should be female and have children. And all therapists should be mental patients themselves. Well, my therapist friends claim that the latter is not too far from reality.


4. But I am looking for a local CPA.

I see no compelling reason for that. 10 years ago, most of the local clients of my firm liked to come to our Houston office. Post-Covid, nobody does. Everybody is now too used to Zoom and portals. We finally closed our physical office in 2024.

Most of the tax experts who specialize in real estate work completely virtually these days.

That said, a local CPA probably does have an edge if your state has state income tax and especially if your city has a local tax on top of it. Still, considering how difficult it is to find a good real estate focused accountant, limiting your search to local providers usually gives you too few options.

Expand your search to include remote CPAs. Just make sure they are familiar with your state tax laws if you have state-level taxation.


5. Bigger Pockets has a directory of tax professionals.

Here it is: https://www.biggerpockets.com/business/finder/tax-and-financ...

Just keep one thing in mind: any directory, this one no exception, is paid advertising. These tax professionals opted to pay to be included in this directory. Others opted not to.

No, there is nothing wrong with paid advertising. Some of my personal friends are on the list, and I highly respect them as my peers. It is entirely possible that every single professional in this directory is outstanding. Just remember that they are listed there not because they have been thoroughly vetted and endorsed by Bigger Pockets. They paid to be there.

Here is an analogy. Think of your favorite contractors, doctors, restaurants and so on. Some of them advertise, and some don't. Why so? Well, the exact same reasoning applies when you think of tax professionals.


6. Tax professionals on the Bigger Pockets tax forum.

I personally think that the best place to find a great real estate accountant is the Bigger Pockets Tax Forum:
https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

The forum features well over 20 of tax professionals. We all specialize in real estate, and we all work remotely and nationwide.

Here is how to go about this search:

- Browse the forum and find a few questions that are relevant to you.
- Watch who answered these questions and how. You can get a good feel for the competence and personality of these experts.
- Look next to the name of the person, and you can see whether they are a tax professional: a CPA, an EA (Enrolled Agent), a tax strategist and so on, it all means roughly the same, as we already discussed. 
- If you come across the same tax expert on multiple threads, and you consistently like their responses, send them a PM via Bigger Pockets or contact them via the contact information listed at the bottom of their comments.

IMPORTANT: we're prohibited from offering our services to you, both publicly and privately - unless YOU initiate the conversation from your end.

Still, some people choose to ignore these Bigger Pockets rules and will send you an unsolicited PM or even post publicly something like "give me a call, happy to chat." Whether you want to engage with such professionals who act unprofessionally is up to you.


7. AI

Artificial intellect is not (at least not yet) a replacement for the actual intellect and experience. It's fashionable - and tempting - to outsource tax research to AI. So far, the results have been disappointing. 

Remember that AI does not "think", at least not as of today. All it does is it aggregates information available on the Internet plus data fed into it by its "trainers." Since the Internet is flooded with trash information, AI absorbs it and produces its conclusions accordingly. Heard of GIGO? Garbage in - garbage out.

Be cautious with tax professionals who substitute AI for true research and analysis. AI is not yet ready to provide tax advice. It might be an improvement over TikTok influencers and self-proclaimed gurus, but not by much. Well, anything is better than influencers, IMHO. Even the Cybertruck owners.


8. When is the best time to look for a CPA?

Once in Downtown Chicago, our group of hungry guys was looking for a restaurant. Unfortunately, we picked a bad time, because a game just finished, and people were streaming out of Wrigley Field. Every restaurant had a long line. But we were hungry and chose one outfit that served us right away. We thoroughly regretted it well into the morning hours.

Bad news: Most good tax accountants also have lines and a long wait, and for the same reason. 

Worse news: the shortage of tax professionals specializing in real estate is getting worse every year. The old guard gets burned out and retires. The replacements often lack the experience.

If you're looking for tax preparation only, without tax advice, then the worst times to look for a CPA are March-April and August-October. Read this post for a longer take: https://www.biggerpockets.com/forums/51/topics/1057644-augus...

If you are looking for tax planning aka tax strategies, the best time to look is November-December. When January comes, you will have two disadvantages:
- you will have missed on the end-of-year planning opportunities
- some of the most highly sought after professionals will be full and not taking clients anymore

And the longer you wait, the fewer choices you will have. When searching for a tax strategist / tax planner / tax advisor - the sooner the better.


9. Last but not least - how much does it cost?

Two long answers are here:
https://www.biggerpockets.com/forums/51/topics/1088325-expla...
https://www.biggerpockets.com/forums/51/topics/998718-explai...

20Reply
501 views

Most Popular Reply

Benjamin WeinhartBusiness Member
Accountant · Cincinnati OH 45245, USA · Member since 2022 · 112 posts · 112 votes
1y

Speaking to your item #6, I was actually told by the staff here over the phone maybe 5-6 months ago that DMing someone is fine so long as it's not a copy/paste ad and is specific to the individual. I was a bit surprised when I heard that, and someone please feel free to correct me if I'm wrong.

Overall, nicely presented, as always! ;)

Only thing to note for anyone who might be reading this later is that you might want a CPA/EA specifically since they're allowed to talk to the IRS on your behalf, whereas the others cannot. There's a few other exceptions such as a tax lawyer, but I find that a lot of folks find comfort in just having me respond to any notices that they might get. This may be a little overkill for some people, however, as many tax accountants will work great for most folks.

I especially agree with #3 as well since a CPA who is an investor might only have one or two long-term rental properties that they've shopped out to a property manager. The majority of our expertise comes from experience and having a specific book of real-estate clients who are involved in a wide variety of activities. For example, when I was in my large public accounting firm days, I worked on a tax return for a client who had $500m+ net revenue over hundreds/thousands of locations across 25+ states. I'm not saying this will never happen to me, but I'd probably be vastly more likely to win the lottery before that happened haha.

I can attest to #8 as well. I'm finishing up the last of my engagement letters for next year and I know many of us will have sporadic availability for tax planning after this week due to the holidays.

[email protected]
Ice Accounting & CPA, LLC55 Reviews
View Page
4Reply
See this reply in the discussion

20 Replies

Jump to latestLatest
  • Benjamin WeinhartBusiness Member
    Accountant · Cincinnati OH 45245, USA · Member since 2022 · 112 posts · 112 votes
    1y

    Speaking to your item #6, I was actually told by the staff here over the phone maybe 5-6 months ago that DMing someone is fine so long as it's not a copy/paste ad and is specific to the individual. I was a bit surprised when I heard that, and someone please feel free to correct me if I'm wrong.

    Overall, nicely presented, as always! ;)

    Only thing to note for anyone who might be reading this later is that you might want a CPA/EA specifically since they're allowed to talk to the IRS on your behalf, whereas the others cannot. There's a few other exceptions such as a tax lawyer, but I find that a lot of folks find comfort in just having me respond to any notices that they might get. This may be a little overkill for some people, however, as many tax accountants will work great for most folks.

    I especially agree with #3 as well since a CPA who is an investor might only have one or two long-term rental properties that they've shopped out to a property manager. The majority of our expertise comes from experience and having a specific book of real-estate clients who are involved in a wide variety of activities. For example, when I was in my large public accounting firm days, I worked on a tax return for a client who had $500m+ net revenue over hundreds/thousands of locations across 25+ states. I'm not saying this will never happen to me, but I'd probably be vastly more likely to win the lottery before that happened haha.

    I can attest to #8 as well. I'm finishing up the last of my engagement letters for next year and I know many of us will have sporadic availability for tax planning after this week due to the holidays.

    [email protected]
    Ice Accounting & CPA, LLC55 Reviews
    View Page
    4Reply
  • Michael PlaksPro Member
    OP
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @Benjamin Weinhart:

    Speaking to your item #6, I was actually told by the staff here over the phone maybe 5-6 months ago that DMing someone is fine so long as it's not a copy/paste ad and is specific to the individual. I was a bit surprised when I heard that, and someone please feel free to correct me if I'm wrong.

    Current BP rules  https://www.biggerpockets.com/rules
    include this paragraph:

    M - No Private Message Spam

    ...private messages may not contain advertisements or solicitations (this includes sending links directing people to your website) including copy and paste messages. Violations of this rule can result in being blocked from our messaging system.
    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    1y
    Quote from @Benjamin Weinhart:

    Speaking to your item #6, I was actually told by the staff here over the phone maybe 5-6 months ago that DMing someone is fine so long as it's not a copy/paste ad and is specific to the individual. I was a bit surprised when I heard that, and someone please feel free to correct me if I'm wrong.

    Overall, nicely presented, as always! ;)

    Only thing to note for anyone who might be reading this later is that you might want a CPA/EA specifically since they're allowed to talk to the IRS on your behalf, whereas the others cannot. There's a few other exceptions such as a tax lawyer, but I find that a lot of folks find comfort in just having me respond to any notices that they might get. This may be a little overkill for some people, however, as many tax accountants will work great for most folks.

    I especially agree with #3 as well since a CPA who is an investor might only have one or two long-term rental properties that they've shopped out to a property manager. The majority of our expertise comes from experience and having a specific book of real-estate clients who are involved in a wide variety of activities. For example, when I was in my large public accounting firm days, I worked on a tax return for a client who had $500m+ net revenue over hundreds/thousands of locations across 25+ states. I'm not saying this will never happen to me, but I'd probably be vastly more likely to win the lottery before that happened haha.

    I can attest to #8 as well. I'm finishing up the last of my engagement letters for next year and I know many of us will have sporadic availability for tax planning after this week due to the holidays.


     You cannot blindly message individuals on BP advertising services. If discussing with someone in a forum and you all take it to private messages, that's a different story. If someone asks for a direct message (they're not supposed to) for something specific you can respond to that, but those threads are usually in the classifieds when we (moderators) can catch them all. 

    Podcast Guest on Show #243
    Skyline Properties
    View Page
    3Reply
  • Michael PlaksPro Member
    OP
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @JD Martin:
    Quote from @Benjamin Weinhart:

    Speaking to your item #6, I was actually told by the staff here over the phone maybe 5-6 months ago that DMing someone is fine so long as it's not a copy/paste ad and is specific to the individual. I was a bit surprised when I heard that, and someone please feel free to correct me if I'm wrong.

    Overall, nicely presented, as always! ;)

    Only thing to note for anyone who might be reading this later is that you might want a CPA/EA specifically since they're allowed to talk to the IRS on your behalf, whereas the others cannot. There's a few other exceptions such as a tax lawyer, but I find that a lot of folks find comfort in just having me respond to any notices that they might get. This may be a little overkill for some people, however, as many tax accountants will work great for most folks.

    I especially agree with #3 as well since a CPA who is an investor might only have one or two long-term rental properties that they've shopped out to a property manager. The majority of our expertise comes from experience and having a specific book of real-estate clients who are involved in a wide variety of activities. For example, when I was in my large public accounting firm days, I worked on a tax return for a client who had $500m+ net revenue over hundreds/thousands of locations across 25+ states. I'm not saying this will never happen to me, but I'd probably be vastly more likely to win the lottery before that happened haha.

    I can attest to #8 as well. I'm finishing up the last of my engagement letters for next year and I know many of us will have sporadic availability for tax planning after this week due to the holidays.


     You cannot blindly message individuals on BP advertising services. If discussing with someone in a forum and you all take it to private messages, that's a different story. If someone asks for a direct message (they're not supposed to) for something specific you can respond to that, but those threads are usually in the classifieds when we (moderators) can catch them all. 

    Thanks for chiming in, JD. 

    Was I correct in my statement?
    "...we're prohibited from offering our services to you, both publicly and privately - unless YOU initiate the conversation from your end."

    In other words, I believe that when I see someone posting on the tax forum (not in Classifieds) that they are looking for CPA, and I react by:
    A. Posting a comment on that forum thread inviting this person to contact me
    B. Sending this person a PM saying that I can help them
    - BOTH of these actions ARE in violation of the rules?

    If I am wrong, then please clarify what is and what is not allowed in response to someone stating that they need a CPA.

    If I am correct, then let me tell you that these rules are enforced very inconsistently, and there're a few people who have been committing these violations repeatedly for months, seemingly without any repercussions for this behavior. (And we the compliant ones are rather annoyed by it, I must add.)




    2Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    1y
    Quote from @Michael Plaks:
    Quote from @JD Martin:
    Quote from @Benjamin Weinhart:

    Speaking to your item #6, I was actually told by the staff here over the phone maybe 5-6 months ago that DMing someone is fine so long as it's not a copy/paste ad and is specific to the individual. I was a bit surprised when I heard that, and someone please feel free to correct me if I'm wrong.

    Overall, nicely presented, as always! ;)

    Only thing to note for anyone who might be reading this later is that you might want a CPA/EA specifically since they're allowed to talk to the IRS on your behalf, whereas the others cannot. There's a few other exceptions such as a tax lawyer, but I find that a lot of folks find comfort in just having me respond to any notices that they might get. This may be a little overkill for some people, however, as many tax accountants will work great for most folks.

    I especially agree with #3 as well since a CPA who is an investor might only have one or two long-term rental properties that they've shopped out to a property manager. The majority of our expertise comes from experience and having a specific book of real-estate clients who are involved in a wide variety of activities. For example, when I was in my large public accounting firm days, I worked on a tax return for a client who had $500m+ net revenue over hundreds/thousands of locations across 25+ states. I'm not saying this will never happen to me, but I'd probably be vastly more likely to win the lottery before that happened haha.

    I can attest to #8 as well. I'm finishing up the last of my engagement letters for next year and I know many of us will have sporadic availability for tax planning after this week due to the holidays.


     You cannot blindly message individuals on BP advertising services. If discussing with someone in a forum and you all take it to private messages, that's a different story. If someone asks for a direct message (they're not supposed to) for something specific you can respond to that, but those threads are usually in the classifieds when we (moderators) can catch them all. 

    Thanks for chiming in, JD. 

    Was I correct in my statement?
    "...we're prohibited from offering our services to you, both publicly and privately - unless YOU initiate the conversation from your end."

    In other words, I believe that when I see someone posting on the tax forum (not in Classifieds) that they are looking for CPA, and I react by:
    A. Posting a comment on that forum thread inviting this person to contact me
    B. Sending this person a PM saying that I can help them
    - BOTH of these actions ARE in violation of the rules?

    If I am wrong, then please clarify what is and what is not allowed in response to someone stating that they need a CPA.

    If I am correct, then let me tell you that these rules are enforced very inconsistently, and there're a few people who have been committing these violations repeatedly for months, seemingly without any repercussions for this behavior. (And we the compliant ones are rather annoyed by it, I must add.)




     Yes, you are correct. Those kinds of posts belong in the Classifieds but the sheer number of threads here mean they often get missed. If someone reports them a moderator is more likely to notice it and act but within the forums those kinds of threads aren't supposed to be there. 

    PS: If you notice one feel free to send me a message on it. I tend to hang out in the Tax forum fairly regularly so I may be one of the first ones to see such a thread or post. 

    Podcast Guest on Show #243
    Skyline Properties
    View Page
    3Reply
  • Michael PlaksPro Member
    OP
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @JD Martin:
    Quote from @Michael Plaks:
    Quote from @JD Martin:
    Quote from @Benjamin Weinhart:

    Speaking to your item #6, I was actually told by the staff here over the phone maybe 5-6 months ago that DMing someone is fine so long as it's not a copy/paste ad and is specific to the individual. I was a bit surprised when I heard that, and someone please feel free to correct me if I'm wrong.

    Overall, nicely presented, as always! ;)

    Only thing to note for anyone who might be reading this later is that you might want a CPA/EA specifically since they're allowed to talk to the IRS on your behalf, whereas the others cannot. There's a few other exceptions such as a tax lawyer, but I find that a lot of folks find comfort in just having me respond to any notices that they might get. This may be a little overkill for some people, however, as many tax accountants will work great for most folks.

    I especially agree with #3 as well since a CPA who is an investor might only have one or two long-term rental properties that they've shopped out to a property manager. The majority of our expertise comes from experience and having a specific book of real-estate clients who are involved in a wide variety of activities. For example, when I was in my large public accounting firm days, I worked on a tax return for a client who had $500m+ net revenue over hundreds/thousands of locations across 25+ states. I'm not saying this will never happen to me, but I'd probably be vastly more likely to win the lottery before that happened haha.

    I can attest to #8 as well. I'm finishing up the last of my engagement letters for next year and I know many of us will have sporadic availability for tax planning after this week due to the holidays.


     You cannot blindly message individuals on BP advertising services. If discussing with someone in a forum and you all take it to private messages, that's a different story. If someone asks for a direct message (they're not supposed to) for something specific you can respond to that, but those threads are usually in the classifieds when we (moderators) can catch them all. 

    Thanks for chiming in, JD. 

    Was I correct in my statement?
    "...we're prohibited from offering our services to you, both publicly and privately - unless YOU initiate the conversation from your end."

    In other words, I believe that when I see someone posting on the tax forum (not in Classifieds) that they are looking for CPA, and I react by:
    A. Posting a comment on that forum thread inviting this person to contact me
    B. Sending this person a PM saying that I can help them
    - BOTH of these actions ARE in violation of the rules?

    If I am wrong, then please clarify what is and what is not allowed in response to someone stating that they need a CPA.

    If I am correct, then let me tell you that these rules are enforced very inconsistently, and there're a few people who have been committing these violations repeatedly for months, seemingly without any repercussions for this behavior. (And we the compliant ones are rather annoyed by it, I must add.)





     Yes, you are correct. Those kinds of posts belong in the Classifieds but the sheer number of threads here mean they often get missed. If someone reports them a moderator is more likely to notice it and act but within the forums those kinds of threads aren't supposed to be there. 

    Thank you for clarifying, JD.

    I don't want to snitch on my colleagues and report their violations. I just hope that there's a way to enforce compliance more strictly.

    As is, the playing field is uneven. People like myself who respect and follow the rules consistently lose prospects to our less ethical peers who initiate contact with investors, with impunity. And people hire them instead of us because it looks like they "care" and we don't.
    1Reply
  • Gregory Wilson
    Member since 2024 · 238 posts · 132 votes
    1y

    Interestingly, attorneys are not permitted to offer services to strangers except by general advertising. Most jurisdictions have adopted ABA Model Rule 7.3 which makes it an ethical violation.

    As for the reason some clients want CPA's who have real estate investments themselves, CPA's can be experts in all kinds of things but not in all things. A person who has spent his 2000 to 4000 minimum CPA practice hours doing foreign currency conversions at Deloitte for a Belgian energy company may not know the first thing about real estate or anything else. And, even if he has real estate clients, doing a tax return doesn't really educate one. Doctors who deliver babies learn how in their OBGYN rotation and midwives counseling pregnant women are mostly mothers themselves. So let's not be too hard on clients who want someone with hands on experience.

    3Reply
  • Michael PlaksPro Member
    OP
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @Gregory Wilson:

    As for the reason some clients want CPA's who have real estate investments themselves, CPA's can be experts in all kinds of things but not in all things. A person who has spent his 2000 to 4000 minimum CPA practice hours doing foreign currency conversions at Deloitte for a Belgian energy company may not know the first thing about real estate or anything else. And, even if he has real estate clients, doing a tax return doesn't really educate one. Doctors who deliver babies learn how in their OBGYN rotation and midwives counseling pregnant women are mostly mothers themselves. So let's not be too hard on clients who want someone with hands on experience.

    You missed my point and my OB/GYN example though.

    KNOWING real estate (or delivering babies) is a requirement for an expert. BEING an investor (or a pregnant mother) is not.
    1Reply
  • Gregory Wilson
    Member since 2024 · 238 posts · 132 votes
    1y
    Quote from @Michael Plaks:
    Quote from @Gregory Wilson:

    As for the reason some clients want CPA's who have real estate investments themselves, CPA's can be experts in all kinds of things but not in all things. A person who has spent his 2000 to 4000 minimum CPA practice hours doing foreign currency conversions at Deloitte for a Belgian energy company may not know the first thing about real estate or anything else. And, even if he has real estate clients, doing a tax return doesn't really educate one. Doctors who deliver babies learn how in their OBGYN rotation and midwives counseling pregnant women are mostly mothers themselves. So let's not be too hard on clients who want someone with hands on experience.

    You missed my point and my OB/GYN example though.

    KNOWING real estate (or delivering babies) is a requirement for an expert. BEING an investor (or a pregnant mother) is not.

    Actually, I think you missed my point. There is a difference between delivering a baby and being pregnant.
    The doctor delivers the baby. For some women, doctor is not required, they drop it in the field. But, still mom doesn't know squat about delivery. Only the doctors many of whom have never been pregnant know anything about delivery. On the other hand, the midwife or pregnancy nurse counsels the pregnant woman. And, I think most women would choose a midwife that has gone through pregnancy.
    Like the OBGYN situation, there is a lot a CPA may not know about the rental business from debiting and crediting some journals and filling out line 242 on some Turbo Tax input form.

    And, understanding the operating details of the rental business are just as different from preparing a tax return as being pregnant is from delivering a baby. 

    1Reply
  • Michael PlaksPro Member
    OP
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @Gregory Wilson:
    Quote from @Michael Plaks:
    Quote from @Gregory Wilson:

    As for the reason some clients want CPA's who have real estate investments themselves, CPA's can be experts in all kinds of things but not in all things. A person who has spent his 2000 to 4000 minimum CPA practice hours doing foreign currency conversions at Deloitte for a Belgian energy company may not know the first thing about real estate or anything else. And, even if he has real estate clients, doing a tax return doesn't really educate one. Doctors who deliver babies learn how in their OBGYN rotation and midwives counseling pregnant women are mostly mothers themselves. So let's not be too hard on clients who want someone with hands on experience.

    You missed my point and my OB/GYN example though.

    KNOWING real estate (or delivering babies) is a requirement for an expert. BEING an investor (or a pregnant mother) is not.

    Actually, I think you missed my point. There is a difference between delivering a baby and being pregnant.
    The doctor delivers the baby. For some women, doctor is not required, they drop it in the field. But, still mom doesn't know squat about delivery. Only the doctors many of whom have never been pregnant know anything about delivery. On the other hand, the midwife or pregnancy nurse counsels the pregnant woman. And, I think most women would choose a midwife that has gone through pregnancy.
    Like the OBGYN situation, there is a lot a CPA may not know about the rental business from debiting and crediting some journals and filling out line 242 on some Turbo Tax input form.

    And, understanding the operating details of the rental business are just as different from preparing a tax return as being pregnant is from delivering a baby. 


    My children were delivered by a wonderful male doctor. But don't you notice any irony in two guys debating this example?   ;)

    Let me use a different example, and I will stop repeating myself after that. If my Toyota needs transmission work, all I care about is whether my mechanic understands Toyota transmissions and how many of them he has fixed before.

    I DO NOT care whether he drives a Toyota himself. I do not care if he drives a Chevy, a motorcycle or walks to the shop. 
    3Reply
  • Gregory Wilson
    Member since 2024 · 238 posts · 132 votes
    1y

    And if I need help with my debits and credits or my Turbo Tax input forms I'm sure to call a CPA.

    1Reply
  • Dan Schwartz
    Real Estate Investor · Tempe, AZ · Member since 2012 · 874 posts · 648 votes
    1y

    AI isn't ready?  But H&R Block was "with Watson" at least as way back as 2018! :-)

    1Reply
  • Jonathan Bock
    Accountant · Bryn Mawr, PA · Member since 2023 · 409 posts · 321 votes
    1y
    Quote from @Michael Plaks:
    Quote from @Gregory Wilson:
    Quote from @Michael Plaks:
    Quote from @Gregory Wilson:

    As for the reason some clients want CPA's who have real estate investments themselves, CPA's can be experts in all kinds of things but not in all things. A person who has spent his 2000 to 4000 minimum CPA practice hours doing foreign currency conversions at Deloitte for a Belgian energy company may not know the first thing about real estate or anything else. And, even if he has real estate clients, doing a tax return doesn't really educate one. Doctors who deliver babies learn how in their OBGYN rotation and midwives counseling pregnant women are mostly mothers themselves. So let's not be too hard on clients who want someone with hands on experience.

    You missed my point and my OB/GYN example though.

    KNOWING real estate (or delivering babies) is a requirement for an expert. BEING an investor (or a pregnant mother) is not.

    Actually, I think you missed my point. There is a difference between delivering a baby and being pregnant.
    The doctor delivers the baby. For some women, doctor is not required, they drop it in the field. But, still mom doesn't know squat about delivery. Only the doctors many of whom have never been pregnant know anything about delivery. On the other hand, the midwife or pregnancy nurse counsels the pregnant woman. And, I think most women would choose a midwife that has gone through pregnancy.
    Like the OBGYN situation, there is a lot a CPA may not know about the rental business from debiting and crediting some journals and filling out line 242 on some Turbo Tax input form.

    And, understanding the operating details of the rental business are just as different from preparing a tax return as being pregnant is from delivering a baby. 


    My children were delivered by a wonderful male doctor. But don't you notice any irony in two guys debating this example?   ;)

    Let me use a different example, and I will stop repeating myself after that. If my Toyota needs transmission work, all I care about is whether my mechanic understands Toyota transmissions and how many of them he has fixed before.

    I DO NOT care whether he drives a Toyota himself. I do not care if he drives a Chevy, a motorcycle or walks to the shop. 

    Being relatable is important maybe not for a tax expert but for an advisor with collaborative relationships it is very helpful.     

    As always it depends but my opinion is it matters based on what the client wants.  Do they want the transactional expert or would a relationship be more valuable to them?  

    1Reply
  • David Gordon
    Member since 2023 · 2 posts · 2 votes
    1y

    Hi Michael,

    I decided to move and rent out my old property this year so I am interested in going to a CPA for the first time. Other than the 1 property I am renting my family's taxes are pretty straight forward with a couple W-2 and no LLC, so when I got the $1,700+ quote for tax preparation it seemed a bit much. Do you still recommend using a real estate CPA or is their tax professionals that specialize in the more simple investor situations like mine?

    Appreciate you help.

    Dave

    1Reply
  • Benjamin WeinhartBusiness Member
    Accountant · Cincinnati OH 45245, USA · Member since 2022 · 112 posts · 112 votes
    1y
    Quote from @David Gordon:

    Hi Michael,

    I decided to move and rent out my old property this year so I am interested in going to a CPA for the first time. Other than the 1 property I am renting my family's taxes are pretty straight forward with a couple W-2 and no LLC, so when I got the $1,700+ quote for tax preparation it seemed a bit much. Do you still recommend using a real estate CPA or is their tax professionals that specialize in the more simple investor situations like mine?

    Appreciate you help.

    Dave


     Hi Dave, it sounds like you went to someone who has high minimums. This means that even if you had 5 rental properties, for example, they would still give you that quote since they're trying to go after more complex tax returns/clients. If what you say is true, I know my base fee would be roughly half or a third of that for your situation if that helps to give you perspective.

    To speak to the other posts in reply to mine, I appreciate the clarification. It seems there's a lot of confusion about the posting rule, so I wonder if that's where much of the inconsistency comes from.

    [email protected]
    Ice Accounting & CPA, LLC55 Reviews
    View Page
    0Reply
  • Michael PlaksPro Member
    OP
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @David Gordon:

    Hi Michael,

    I decided to move and rent out my old property this year so I am interested in going to a CPA for the first time. Other than the 1 property I am renting my family's taxes are pretty straight forward with a couple W-2 and no LLC, so when I got the $1,700+ quote for tax preparation it seemed a bit much. Do you still recommend using a real estate CPA or is their tax professionals that specialize in the more simple investor situations like mine?

    Can't answer your question with a yes or no. Preparing a tax return with one long-term rental is not rocket science. You could even do it yourself after learning the basics. 

    Many people change oil in their cars themselves. I go to a shop and pay them, because I don't trust my mechanical skills, even with something as basic as an oil change.

    Any tax preparer anywhere, including franchises like H&R Block, should be able to prepare your taxes correctly. Yet, I regularly correct major errors made on tax returns by HRB people and even by CPAs. Don't know what else I can tell you to help you choose.


    2Reply
  • David Gordon
    Member since 2023 · 2 posts · 2 votes
    1y

    Thanks Michael! I will continue to do my research and try to find a CPA that handles Texas and has a lower minimum I think.

    1Reply
  • Sean O'KeefePro Member
    CPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votes
    1y

    It’s more complicated then I thought to find a Real Estate CPA 🙂‍↕️

    [email protected]628-241-0888
    1Reply
  • Michael PlaksPro Member
    OP
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    1y
    Quote from @Sean O'Keefe:

    It’s more complicated then I thought to find a Real Estate CPA 🙂‍↕️

    Feel free to give me a call to discuss how I can help. And see my PM, too.
    Oh, wait, never mind. We're not allowed to do this. ;)

    Moderators: notice that this was just a joke between two colleagues, both tax professionals.

    3Reply
  • Armell Mayers
    Member since 2024 · 5 posts · 5 votes
    1y

    thank u!!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free