Tax planning service

Tax, SDIRAs & Cost Segregation
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Tax planning service

Kevin Day
Member since 2025 · 18 posts · 21 votes

Hello all.

I live and work in California. I just bought my first out of state investment property. It's long term rental in Ohio. I bought the home in mid December so my taxes for 2025 weren't very complicated.

I am looking for tax planning, some one to help me prepare for the rest of the year and maximize my tax efficiency. Couple important details about my situation. 
Live in California 
Have W2 income Own a small business Own 1 SFR in Euclid, Ohio as of right now everything is set up in my name, no LLC or S-corp or anything.

Thank you                                             Kevin

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Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
6mo

Congrats on the first out-of-state rental! I would strongly recommend connecting with a CPA who specializes in real estate investors, specifically one familiar with both California and Ohio tax laws, since you're dealing with two states.

[email protected]614-490-1163
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  • Michael PlaksPro Member
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    6mo

    @Kevin Day

    We tax accountants are not allowed to offer you our services until the moderators move your post into the Classifieds area.

    Meanwhile:
    https://www.biggerpockets.com/forums/51/topics/1222774-expla...

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6mo
    Quote from @Kevin Day:

    Hello all.

    I live and work in California. I just bought my first out of state investment property. It's long term rental in Ohio. I bought the home in mid December so my taxes for 2025 weren't very complicated.

    I am looking for tax planning, some one to help me prepare for the rest of the year and maximize my tax efficiency. Couple important details about my situation. 
    Live in California 
    Have W2 income Own a small business Own 1 SFR in Euclid, Ohio as of right now everything is set up in my name, no LLC or S-corp or anything.

    Thank you                                             Kevin


     Happy to send you some referrals

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    6mo

    Hi Kevin,

    You’re on the right track, and you're asking the right questions to maximize your tax efficiency with your new investment property. When it comes to tax planning, having the right structure in place can make a big difference.

    Given that you live in California and own a property in Ohio, working with a CPA who specializes in both states would be helpful to navigate the intricacies of multi-state taxes. BiggerPockets is full of great CPAs who work with multi-state real estate investors like yourself, and I recommend reaching out to a few to see which one aligns with your goals. They'll be able to guide you in structuring your rental property and business to optimize your taxes going forward.

    Happy to connect!

    [email protected]941-914-7779
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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    6mo

    Congrats on the first out-of-state rental! I would strongly recommend connecting with a CPA who specializes in real estate investors, specifically one familiar with both California and Ohio tax laws, since you're dealing with two states.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate541 Reviews
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  • Fulton Abraham Sanchez
    CPA| New Clients Welcome| 50 States · Member since 2016 · 440 posts · 96 votes
    6mo

    @Kevin Day, hi. You are on the right track, just wanted to highlight a few key points as you begin your tax planning journey:

  • -Don't rush into an LLC or S-Corp—no major tax benefit for a single rental; LLC is more for liability.

  • -Focus on depreciation, your main tax advantage (consider cost segregation as you grow

  • -Rental losses are usually passive and limited unless you meet specific criteria.

  • -You’ll likely need to file in both Ohio (nonresident) and California, with CA taxing worldwide income.

  • -Use your small business for additional tax optimization opportunities.

  • -Plan ahead if you want to scale, structure, financing, and strategy matter early.

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  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 979 votes
    6mo

    @Kevin Day

    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.

    404-482-3170
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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    6mo
    Quote from @Kevin Day:

    Hello all.

    I live and work in California. I just bought my first out of state investment property. It's long term rental in Ohio. I bought the home in mid December so my taxes for 2025 weren't very complicated.

    I am looking for tax planning, some one to help me prepare for the rest of the year and maximize my tax efficiency. Couple important details about my situation. 
    Live in California 
    Have W2 income Own a small business Own 1 SFR in Euclid, Ohio as of right now everything is set up in my name, no LLC or S-corp or anything.

    Thank you                                             Kevin

    Hey Kevin, congrats on getting your first out-of-state deal done, that’s a big step. For your situation, the biggest wins usually come from making sure you’re capturing all the basics first before getting fancy with entities, things like properly tracking every expense tied to the property, taking advantage of depreciation, and understanding how your passive losses interact with your W2 and business income since that’s where a lot of people leave money on the table. Since you’re in California with an Ohio rental, you’ll also be filing in multiple states, so having a CPA who understands multi-state returns and real estate specifically is huge, especially to make sure you’re allocating income and deductions correctly. On the entity side, many investors hold their first property in their personal name for simplicity and financing, then revisit LLCs later for liability and scaling, but it’s very situation dependent so it’s worth getting tailored advice before making changes. A good tax strategist can also help you look ahead at things like cost segregation, retirement account strategies, and how to structure future purchases in a more tax-efficient way as you grow. Happy to connect and answer any questions you have!
    [email protected]614-300-7535
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  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    6mo
    It’s absolutely worth connecting with a cpa to see if you’re maximizing taxes. I’d reach out to those that are active in the forums and reach out to local investors as well. You can probably get by with hourly consulting unless you’re looking for a cpa/advisor relationship both during the year and at tax time.
    [email protected]
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  • William Rizer
    Member since 2023 · 79 posts · 27 votes
    6mo

    Austin Johnson is another great person to reach out to. Here's here on BP. 

    0Reply
  • Christopher Tile
    Accountant · Long Island, NY · Member since 2021 · 189 posts · 153 votes
    6mo

    As mentioned, - there are plenty of qualified CPAs here on the forum.

    Whoever you choose, ensure that they have proper experience in CA, especially in small business tax planning. Things can get expensive really quick if you start opening up LLCs in CA (minimum of $800 annual fee). Entity structuring/asset protection will be increasingly important for you as you grow.

    0Reply
  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 912 votes
    5mo

    On filing, with a property in Ohio and your residence in California, you'll likely need to file in both states — Ohio as a nonresident, and California as your home state since CA taxes worldwide income. Depreciation is going to be your biggest tax lever, and as you grow you can layer in cost segregation. On structure, for rentals an LLC is generally the better fit — there's no real tax benefit to an S-Corp for a single rental, and S-Corps come with their own headaches (you have to pay yourself reasonable compensation, and once you elect S-Corp you're typically locked in for 5 years before you can revoke it). The LLC is really there for liability protection. Worth knowing too that rental losses are normally passive and limited unless you meet specific tests. Your small business is another spot worth looking at for tax optimization opportunities. And if scaling is on the horizon, getting structure, financing, and strategy lined up early really pays off down the line. You're on the right track.

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  • Jose OrtizBusiness Member
    Accountant · South Florida · Member since 2026 · 47 posts · 18 votes
    5mo

    Kevin,

    Quick thing most people miss with the setup:

    Since you’re in California, your Ohio rental doesn’t just “live” in Ohio - CA still taxes it too. So the game isn’t just deductions… it’s making sure you’re not leaking money between the two states while coordinating it with your W2 and business.

    Also, depending on your income, that rental loss might not even help you right now unless it’s structured the right way. That’s usually where people get surprised.

    Nothing complicated yet, which is actually the best time to get ahead of it.

    Hope you found this valuable.

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5mo

    You want your accountant to make sure that you set up the depreciation correctly.
    Furthermore, since you have a property in Ohio, you should make sure that you are filing all the required tax returns.
    Ohio is a unique state that they also require local filing obligations. 
    In addition to filing a return with Ohio, you also need to file a tax return with Euclid.

    Best of luck!

    [email protected]917-280-8544
    Basit Siddiqi CPA4.880 Reviews
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  • Diyan Yap
    Accountant · Austin, TX · Member since 2026 · 3 posts · 1 vote
    5mo

    Congrats on the first rental! I would strongly recommend connecting with a Tax Professional

    1Reply
  • Matthew SchumacherBusiness Member
    Member since 2025 · 43 posts · 26 votes
    4mo

    Congrats on the first rental!

    A lot of the advice here has focused on the Ohio property itself, but if I were in your shoes, I'd spend just as much time looking at the interaction between your W-2 income, your small business, and your rental activity.

    Many investors think their first rental property will create huge tax savings, but with one long-term rental, the immediate tax benefits are often more limited than expected because rental losses are generally passive. The bigger opportunities may actually be inside your existing business.

    For example, depending on your facts and circumstances, there may be opportunities around retirement planning, entity structure, accountable plans, business vehicle usage, hiring family members, equipment purchases, or other business-specific tax strategies that could produce more immediate tax savings than a single rental property.

    I'd also encourage you to think beyond this year's tax return. Good tax planning starts with your long-term goals. Are you trying to build cash flow? Reduce taxes? Create retirement income? Scale to 10+ properties? The answer may change how you structure future purchases, financing, entities, and even how aggressively you pursue depreciation strategies.

    The biggest mistake I see new investors make is focusing on tax deductions first and strategy second. I'd focus on building a long-term wealth plan and then use tax planning to support that plan in the most efficient way possible.

    Your first rental is a great start, but your best tax opportunities may come from coordinating all three areas—your W-2, your business, and your real estate—rather than looking at the Ohio property in isolation.

    [email protected]847-380-3894
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  • Nate MeekerBusiness Member
    Real Estate CPA | California · Member since 2020 · 544 posts · 251 votes
    4mo

    I’d be careful not to get pulled into flashy “tax planning packages” or overpriced legal structures too early.

    With one long-term rental, you likely need practical guidance more than a complex setup. The big items are usually maximizing depreciation, understanding what should be capitalized versus expensed, and using the de minimis safe harbor and repair rules correctly.

    An LLC may make sense for legal liability, but it usually does not create a major tax benefit by itself. I'd focus first on clean books, good documentation, depreciation strategy, and making sure the rental is reported properly.

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