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CPA or Normal tax man????
Hi, I'm I'm currently building up my investment portfolio and I was curious on how a CPA would work. I would like to hire one, I just don't know how much it would cost or if it would even be worth it. Right now I just work with the normal tax guy. Seems like he does all right, but I don't know if a CPA would be a better route for me. For somebody out there that knows anything about it. I take any type of advice you got thanks.
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CPA here. That price raises a flag for me. Three rentals in two states means you need a federal return, Schedule E for all three properties, AND non-resident returns for both NC and AZ. NC charges state tax on rental income from NC properties even if you live elsewhere, same with Arizona. Most generalist preparers either skip the state returns or do them but miss the nuances around how rental income gets allocated.
The bigger issue isn't what you're paying, it's what you're not getting. Are all three properties being depreciated correctly? Are you running them through an LLC or individually? Is anyone talking to you about cost segregation or whether you qualify for any passive loss offsets against your other income?
$500 is cheap for three rentals. You're probably getting filing, not planning. Worth one conversation with a RE-focused CPA to see what you're missing. Ask them: what am I leaving on the table? If they can't answer that with specifics, you have your answer.