Mid-range priced tax pros?

Question

If I go to one of the local tax pros in town, they'll charge around $500-$600 to do my tax return if I have mostly just W-2 income and a rental property. They do a decent job, but they don't specialize in real estate and they don't know much about things like the STR strategy or how to apply a cost seg study. So I tried the BP tax pros tool, and it seems most of the tax pros that use that charge $3000+ minimum for a tax return with no consultation or advice included, or $4000-$7000 (!) if you want them to look at your situation and recommend a strategy (which will probably be primarily about using STR strategy and a cost seg study).

Is it possible to find tax pros who are good with real estate who have pricing somewhere in the middle? Someone who understands how to do taxes for real estate investors, but is willing to do a tax return with one or two rental properties for say maybe $900-$1800? And if that doesn't include consultation to answer questions and talking about tax strategy ideas, maybe just a reasonable hourly rate for that?

Michael Plaks · Answer

@Jim P.

May I suggest this post?https://www.biggerpockets.com/forums/51/topics/1088325-expla...

Aaron Zimmerman · Answer

Yes it is possible and that all seems reasonable. There are many CPAs on here that could do that. I'd recommend reaching out to some local investors and also reaching out to people on the forums.

Jason Malabute · Answer

To answer your question, yes, you definitely could — but I’d encourage you to look at it from a value perspective rather than just the price. If a CPA charges $3,000 but helps you unlock far greater tax savings or structure your strategy more efficiently, then the question shouldn’t be “why is it more expensive,” but “what kind of return am I getting for that investment?”

Randall Tannen · Answer

@Jim P.

"So I tried the BP tax pros tool, and it seems most of the tax pros that use that charge $3000+ minimum for a tax return with no consultation or advice included, or $4000-$7000 (!) if you want them to look at your situation and recommend a strategy (which will probably be primarily about using STR strategy and a cost seg study)."

You don't just want strategy recommendations. You want a tour guide to navigate you through it.

Joshua Thompson · Answer

I haven't seen many colleagues using the hourly billing model recently, but there are still firms that do. There are definitely firms in the middle, way above and way below that pricing. The hardest part is finding a firm you trust that balances quality of work and pricing. A great place to start is asking individuals you already know for a referral. This way you'll get a good idea on the firm and pricing.

A good, knowledgeable tax professional may be expensive compared to your previous accountant, but often times, they are worth it. Sometimes you don't know they are worth it until you work with someone else who filed your return incorrectly, and now you're getting notices, then they will be even more expensive.

Try reaching out to 2-3 professionals in the forums and 2-3 referrals organically.

Fulton Abraham Sanchez · Answer

@Jim P., hi.It's a fair question, and yes there is a sane middle. Here’s what I tell BP investors to look for:Middle-market pricing exists: $900–$1,800 for a W-2 + 1–2 rentals is reasonable when it includes proper schedules (E, 4562/Depreciation, 8582 passive losses, 6198 at-risk, state returns, and a quick QBID/199A check).Unbundle strategy: Keep the return flat-fee and add advisory hourly ($250- $350/hr) or a one-time “strategy-lite” review ($500–$1,200) for STR/material participation, grouping, and when a cost seg actually pencils.If you want, e-mail me your facts (units, rents, W-2/K-1, state) and I’ll tell you exactly what tier you should be quoted—and what to skip.

Gregory Wilson · Answer

Tax return prep and tax advice consultation are two entirely different businesses from the providers' standpoint. Get your cheap tax return done and seek hourly consultation for tax advice. Remember that: the more tax you pay and the less tax benefits you claim, the easier the job for the tax preparer.

Mid-range priced tax pros?

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