Tax Strategist or CPA?
Member since 2023 · 42 posts · 28 votes
Tax Strategist or CPA?
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Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votesQuote from @Brett Riemensnider:
Hello everyone. Seeking advice for my situation. I currently hold a W-2 job, small investments (ROTH IRA, mutual funds) along with my rental property that I purchased a year and a half ago.
I know there are many tax benefits with real estate and want to take full advantage of my tax breaks to minimize my taxes.
With being still in the beginning stages of being an investor the question is, tax strategist or a CPA? Last year I went the tax strategist route, communication and explanations of everything was very minimal and cost me $800. I'm not trying to be cheap if it's not the smart route, however the services I received for what I have seemed like maybe it was overkill and not informative. Am I getting ahead of myself by paying this much for my taxes to be done when I only have 1 rental? Please advise. Thanks in advance experts!
There is no such distinction as CPA vs Tax strategist. CPA is a license, Tax strategist is a self-assigned label. There're 20+ tax accountants on this forum. We all consult on tax strategies, so each of us can call himself/herself a Tax Strategist. Some of us hold CPA licenses, some hold EA licenses which is basically the same. Here is more detail:
https://www.biggerpockets.com/forums/51-tax-legal-issues-con...
And here's a helpful look at what you get by hiring a tax professional:
https://www.biggerpockets.com/forums/51/topics/1088325-expla...
If you feel confused about what tax benefits are available to you, sometimes one consultation is enough, as opposed to an ongoing engagement. When your business grows, maybe then you would need more support.
22 Replies
- 9moDivin KanyamaBusiness MemberAccountant · Seattle, WA · Member since 2025 · 704 posts · 298 votes
That’s a fair question, Brett. It’s wise to consider both advantages and disadvantages when deciding whether to work with a skilled CPA or tax strategist. You should compare what you might invest against hiring a professional, as well as your potential tax savings. If the benefits exceed the costs, it makes sense to proceed. 😊
- 9moMichael PlaksPro MemberTax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
Quote from @Brett Riemensnider:
Hello everyone. Seeking advice for my situation. I currently hold a W-2 job, small investments (ROTH IRA, mutual funds) along with my rental property that I purchased a year and a half ago.
I know there are many tax benefits with real estate and want to take full advantage of my tax breaks to minimize my taxes.
With being still in the beginning stages of being an investor the question is, tax strategist or a CPA? Last year I went the tax strategist route, communication and explanations of everything was very minimal and cost me $800. I'm not trying to be cheap if it's not the smart route, however the services I received for what I have seemed like maybe it was overkill and not informative. Am I getting ahead of myself by paying this much for my taxes to be done when I only have 1 rental? Please advise. Thanks in advance experts!
There is no such distinction as CPA vs Tax strategist. CPA is a license, Tax strategist is a self-assigned label. There're 20+ tax accountants on this forum. We all consult on tax strategies, so each of us can call himself/herself a Tax Strategist. Some of us hold CPA licenses, some hold EA licenses which is basically the same. Here is more detail:
https://www.biggerpockets.com/forums/51-tax-legal-issues-con...
And here's a helpful look at what you get by hiring a tax professional:
https://www.biggerpockets.com/forums/51/topics/1088325-expla...
If you feel confused about what tax benefits are available to you, sometimes one consultation is enough, as opposed to an ongoing engagement. When your business grows, maybe then you would need more support. - Accountant · NV · Member since 2024 · 39 posts · 25 votes9mo
Hey Brett,
Nice to meet you. I am a CPA in Las Vegas. I have been working in accounting firms for 7+ years, so I'm coming from a perspective of a CPA.
I think it all depends on what type of tax support you are looking for. A good Tax preparer can save you both Administrative costs and generate tax savings. That all depends on what you are trying to accomplish.
Boris Musheyev, is a CPA who discusses Tax Strategies on his YouTube Channel. There are others like Mark J Kohler, Matt Sorensen, Jasmine DiLucci, and Don't forget the Tax Smart Real Estate Investors who run the Real Estate CPA Podcast with Brandon Hall.
Don't be afraid to take the strategies from these videos and ask your tax strategist how those strategies apply to you. You are still the captain of your ship, and there may be a strategy that your CPA would not consider a fit for you. Research, but confirm confirm confirm as they always say.Boris says in his ads and videos that you want a professional will do more than just fill in the right boxes with the right numbers.
You may just need someone who is willing to slow down and sit down and have a thoughtful conversation on your goals and your future. However, you may just need procedural administrative work completed for you. Sounds like your somewhere in the middle aha.
Hope this helps!
Austin Smith, CPA
- Investor · Hinton, WV · Member since 2026 · 10 posts · 5 votes8mo
Quote from @Austin L. Smith:
Hey Brett,
Nice to meet you. I am a CPA in Las Vegas. I have been working in accounting firms for 7+ years, so I'm coming from a perspective of a CPA.
I think it all depends on what type of tax support you are looking for. A good Tax preparer can save you both Administrative costs and generate tax savings. That all depends on what you are trying to accomplish.
Boris Musheyev, is a CPA who discusses Tax Strategies on his YouTube Channel. There are others like Mark J Kohler, Matt Sorensen, Jasmine DiLucci, and Don't forget the Tax Smart Real Estate Investors who run the Real Estate CPA Podcast with Brandon Hall.
Don't be afraid to take the strategies from these videos and ask your tax strategist how those strategies apply to you. You are still the captain of your ship, and there may be a strategy that your CPA would not consider a fit for you. Research, but confirm confirm confirm as they always say.Boris says in his ads and videos that you want a professional will do more than just fill in the right boxes with the right numbers.
You may just need someone who is willing to slow down and sit down and have a thoughtful conversation on your goals and your future. However, you may just need procedural administrative work completed for you. Sounds like your somewhere in the middle aha.
Hope this helps!
Austin Smith, CPA
Great perspective, Austin
As an active real estate investor, I completely agree that finding the right tax strategist is about matching their expertise to your specific goals. The key is finding someone who will take the time to understand your portfolio and help you execute, not just prepare your return. In real estate, the difference between a good CPA and a great one can literally mean tens of thousands in tax savings and faster wealth accumulation through strategic entity structuring and cost segregation.
- 9moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
I would have the same person that preps your taxes also do a tax strategy call with you. Definitely important to understand your full picture and see where there's opportunities on the rental side and otherwise.
Brick House CPAs54 Reviews - Member since 2024 · 238 posts · 132 votes9mo
IRS has made tax preparers their police force. With the threat of de-licensing, IRS makes the preparer certify the compliances they demand.
Sometimes IRS is right, sometimes they are wrong. They have lost a lot of cases in the Courts of Appeals and even in the USTC. some to me in my litigation days.
But as far as your returns are concerned your preparer will be saying they are 100% right no matter the issue. So I say get a storefront preparer and get your tax advice from someone who does not sign your return.
- Accountant · Long Island, NY · Member since 2021 · 195 posts · 157 votes9mo
I agree with @Aaron Zimmerman. You wouldn't want to get tax advice from an advisor, then turn to a storefront preparer for complex tax strategies revolving real estate.
Why wouldn't your tax advisor be able to prepare the tax return? You'd want the advice to directly translate how it was intended on the tax return.
As @Michael Plaks stated, a quality CPA/EA with experience should be able to provide sound tax advice and serve as an "advisor" as well as your preparer. If you hire a tax preparer that can't give tax advice on treatment/strategy, I wouldn't be too confident in having them file your annual taxes. If you are asking questions related to your real estate, and they are unable to give an answer, that should be a red flag.
Usually, you get what you pay for. Tax advice is no exception.
- Member since 2026 · 1 post · 0 votes8moDid your tax person meet with you outside of just the tax return filing process or suggest it?
- Member since 2023 · 42 posts · 28 votes8mo
@Charlie Forsyth no, I just showed up, I had all of my receipt information for my repairs I did to the property as well as my opex spendings. They ran the numbers, talked about random stuff and kind of just spoke to me like I was a seasoned vet that just wanted to be in and out quick. Just felt rushed and not worth the money that was spent
- Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes8mo
Quote from @Brett Riemensnider:
@Charlie Forsyth no, I just showed up, I had all of my receipt information for my repairs I did to the property as well as my opex spendings. They ran the numbers, talked about random stuff and kind of just spoke to me like I was a seasoned vet that just wanted to be in and out quick. Just felt rushed and not worth the money that was spent
This wasn't tax strategy. Tax Strategy happens before/during the year.
One of the biggest ways investors mis-order importance is wanting strategy before having facts to create a strategy with.
You need actual accurate financials; it doesn't need to be quickbooks per say - but unless you have up-to-date actual financials with regard to the year to date income and expenses...any strategy or planning is pretty useless because it may be totally off the mark.
Regarding a CPA or a Tax Strategist ...Here's my 2 cents
Some CPA's are excellent at tax, others do no tax at all, I personally have clients who are CPAs and I do their taxes.
There are also EAs (Enrolled Agents) licensed through the IRS; tax focused. Similarly here- some are excellent ....others are terrible at their job.
And there are uncredentialed preparers who will run circles around people with either license. Unfortunately a license doesn't mean a skill - did you go to college with anyone who barely scraped by with Cs? Those people are licensed doctors, attorneys, CPAs etc- and held at the same level as the valedictorian.
What I recommend - The person should be licensed as an EA or CPA.
Next- check their Linkedin and actual workplace history and education.
Working for a corporation in their accounting department is often completely unrelated to preparing personal and business tax returns.
Someone who is a CPA but worked at Microsoft for 25 years doing financial statements...may not have ever prepared a tax return.
Look for experience at actual Tax, CPA, Public Accounting, Law firms.
Third a Tax Strategist is great; if they know actual tax and are not regurgitating fancy strategies they've heard on you tube. If you look at their content and it's all hype words, no reference to tax code sections, tax court cases, etc....I'd be a little leery.
- Member since 2024 · 238 posts · 132 votes8mo
The functions of tax strategist and tax return preparer are entirely different businesses with entirely different skill sets and mind sets. I would no more have my strategist prepare my return than I would have my architect pour my concrete patio or place my bridge piers. I have done both and they are unrelated.
- Member since 2024 · 158 posts · 88 votes8mo
My tax situation is similar but I have 4 rentals and I was just quoted 2500 just for doing g taxes, no strategy. I thought it was rediculous because I have been doing g my own with turbo tax for years. I am probably just goi g to upgrade to the $150 version with tax expert and audit protection. If you have LTR, I think it is pretty simple. I am going to to read this book that I heard on the BP posdcast: https://store.biggerpockets.com/products/the-book-on-tax-strategies-for-the-savvy-real-estate-investor
I agree with the points above! Significantly, a CPA is a real license while tax strategist is mostly just a label that doesn't mean much. For one rental property, paying big money annually doesn't make sense if you're not walking away with actual understanding. I would find a solid CPA who takes time to explain depreciation and how your W-2 income plays into things and maybe just a one-time consult. For what it's worth, I have been with cost seg guys on my rentals and their reports make the whole process clear for my CPA.
- CPA| New Clients Welcome| 50 States · Member since 2016 · 440 posts · 97 votes8mo
@Brett Riemensnider, hi. You are not getting ahead of yourself, but with one rental and a W-2, you likely don’t need an expensive strategy package yet. What you need is a CPA who prepares the return correctly and clearly explains depreciation, expenses, and passive loss rules.
Early on, proper setup matters more than complex planning. As your portfolio grows, deeper tax strategy becomes more valuable. Focus on clarity, accuracy, and positioning for future growth.
- Member since 2023 · 42 posts · 28 votes8mo
@Fulton Abraham Sanchez thank you for the comment, I feel like this is exactly my situation. Should I just be searching different CPA's? I've seen anywhere from $800-$4,000 and even the low end seems excessive for my current financial situation. Any further advice on this?
- 8moBill HamptonBusiness MemberAccredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 979 votes
I recommend finding an accountant who specializes in real estate taxation and is proactive instead of reactive when providing advice.
Working remotely with your accountant will expand your options. The best person for the job may not be local.
I would also recommend looking for an accountant who will 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.
Happy to answer any questions. Good luck.
Hampton Tax and Financial Services LLC4.7106 Reviews- Investor · Hinton, WV · Member since 2026 · 15 posts · 9 votes8mo
Quote from @Bill Hampton:
I recommend finding an accountant who specializes in real estate taxation and is proactive instead of reactive when providing advice.
Working remotely with your accountant will expand your options. The best person for the job may not be local.
I would also recommend looking for an accountant who will 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.
Happy to answer any questions. Good luck.
This is a spot on answer, Bill
As an investor, I'd like to add that waiting until tax season to talk to my CPA means leaving money on the table and having someone proactive who actually understands real estate and is accessible year-round has made a huge difference for my portfolio. I've also worked with the Cost Segregation Guys on a few deals and had really good results, they got specific investments and was a hands-on experience with my CPA ofcourse...
- Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes8mo
I really like Michael Plaks' answer, but I'll add to it. My undergrad was accounting and I did go through the CPA track before becoming a bank lender after graduation instead of going into accounting. That background makes it easier to be our "CFO", but it also means I probably over nit-pick CPAs and it's been really, really hard to form a relationship with one. I had one for years that I liked, but as he grew and purchased a couple of other practices, he pawned me off on a couple of low-level underlings because we weren't big enough or complex enough to warrant big bills. Then, we started getting IRS letters that he ignored when we forwarded them to him. One of my long-time buddies is a tax attorney and he started handling me himself as a favor...not that my little company are "big fishes". Now to your question, I've found the most important thing in choosing a tax/accounting pro is "are they available" and "do they actually listen". Before begging my tax attorney buddy for help with a bottle of really good scotch, I struggled finding someone that wasn't providing me worse service than I could actually provide myself. I'm unique with my background, but none of us should be pushed to the bottom of a pile. That being said, we all must also accept a great deal of responsibility. It's really not that hard to keep ongoing books (investing an hour every couple of weeks) and records (Quickbooks or some other software...provided your on top of it). If we have our poo together, leave the tax pro plenty of lead time (not an April 14 delivery of required documents to the accountant), and provide what the accountant needs to do their job...and I don't mean a shoe box stuffed with ketchup-stained receipts, then there is no reason that we shouldn't get a minimum level of service from a tax pro.
- 8moAshish AcharyaBusiness MemberCPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
Brett, this is a really good question and you’re not wrong for thinking about cost versus value this early.
Here’s the simple tax perspective: with one rental and a W-2 job, you likely don’t need a high-level “tax strategist” yet. Most of the tax benefits at this stage are fairly standard, depreciation, mortgage interest, property taxes, insurance, repairs, maybe some travel and mileage. A solid CPA who understands rental real estate can handle that well and make sure it’s filed correctly.
Where tax strategists add real value is when you’re dealing with multiple properties, entity structuring, Real Estate Professional Status, cost segregation, large capital gains, or higher income planning. With one rental, there usually isn’t that much advanced strategy to implement yet.
The key isn’t CPA versus strategist. It’s whether the person is proactive and explains things clearly. You should understand how your rental is being depreciated, what losses are doing on your return, and whether you’re limited by passive loss rules. If you’re not getting education and clarity, that’s a problem regardless of title.
So no, you’re not being cheap. You’re being practical. At your stage, a good real-estate-savvy CPA is usually enough. As your portfolio grows, then it makes sense to layer in more strategic planning.
Good luck, and happy to connect.
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