Trying to get an idea of what people are paying for accounting services to file taxes.
We are a Missouri LLC operating in the Kansas City area set up as C-Corp, so nothing passes to personal taxes.
We have 11 properties/14 doors. We do all the book keeping and then turn it over to an accountant who has the depreciation schedules to add in for the year, checks to make sure everything adds up, and then files the federal and state taxes for us.
We have used this accountant for the last 7 years since we started. Last year they charged us $1,800 for the services outlined above.
With rising costs and constantly changing economy, does this sound reasonable?
Curious if there's a reason your rentals are in a C Corp?
Are they updating your year end bookkeeping, Filing an 1120 and a 1040 for the $1,800?
If so that's very, very reasonable.
Agreed @Natalie Kolodij. If your CPA/EA is well versed in the real estate space (unsure with your rentals being in a c-corp - would need more information here), this is a very reasonable price to file the return.
Without getting to far into it, we specifically selected C-Corp when we incorporated because we needed to keep the company finances and taxes separate from personal. It's unique to our situation.
Yes, the accountant is updating our end of year booking and filing all tax documents.
$1800 for 11 properties seems very reasonable, and arguably a bargain. Since the accountant is updating your year-end bookkeeping and filing both Federal and State returns, they are providing a full-service package that often costs much more.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
6mo
We pay just over $4k. This includes a collaboration in Oct/nov for tax strategies, a couple different state taxes as well as various consultations such as if cost seg makes sense on properties, info on pass through inheritance, NUA, traditional Ira to Roth conversions, etc. I recognize he is not the cheapest option in terms of his fees, but he is reasonable in the resulting savings.
some things are best. Not to skimp on. I include a tax advisor in this category.
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
6mo
Sounds pretty normal. Maybe a touch high but how much time will it take to find someone else that maybe charge $500 less and you have to start all over building trust.
CPA| New Clients Welcome| 50 States · Member since 2016 · 435 posts · 93 votes
6mo
@Kyle Daniels, hi. For a portfolio with 11 properties and 14 doors structured as a C-Corp, paying about $1,800 for federal and state tax preparation is generally considered reasonable if the bookkeeping is already clean.
Much of the CPA’s work involves reviewing the books, verifying depreciation schedules, and ensuring capital improvements are properly classified. Fees can vary depending on complexity, multi-state filings, and how much cleanup is required. When the records are well organized and the CPA mainly performs review and tax filing, the cost tends to stay lower.
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
5mo
Hey Kyle, I agree with most of the answers and will add a little bit more insight. $1,800 for a C-Corp return with 11 properties and depreciation tracking is generally on the low side in today’s market, especially if the CPA is reviewing the books, maintaining depreciation schedules, and filing both federal and state returns.
For context, many firms charge anywhere from $1,500 to $4,000+ for a return with multiple properties, depending on complexity, number of states, and whether bookkeeping adjustments or planning are included.
If they’re accurate, responsive, and the filings are clean, that pricing is still quite reasonable. The bigger value usually comes from whether the accountant is also helping with tax strategy and planning, not just filing the return, especially if you want to grow and scale.