CPA cost

8 Replies

I have two separate US corp. One Georgia corp. and one Florida corp. Each one has just two single family houses. My CPA filed for the IRS and state taxes and made the yearly accounting. He asked me 1200 $ for one company and 1300 $ for the other. Due to the small income on each company, this seems quite a lot. I would like to know if it is an acceptable price.

Hard to say what is a fair charge where you live.   If you feel it is too much.  You should have asked how much it will be before having him do the work for you.  

@Jean Paul Rousseau  C-corps cost more to prepare, but it does seem high to me. Of course it looks like you are a foreign investor and you may have to pay a premium for ta prep as extra work is involved. 

Here is a link to average cost to prepare various returns. C-corp is $800.

http://www.irs.com/articles/tax-preparation-costs-and-fees

@Jean Paul Rousseau  There are additional regulations that need to be complied with and additional calculations to apply toward credits and such. Still should it cost $400 extra? Maybe maybe not.

Tell us a bit more about the corporations. Are they buy/hold properties? Are there any additional activities being performed in these corporations? Is anyone on payroll? How is it being managed?

@brandon Hall

Those corporations are buy/hold properties only. I am president and my children are stockholders. I lent the money to the corp. to buy the houses and the corp. should give me my money back in 20 years (5% per year). The advantage is that the tax reporting is only US and if the corp. does not serve dividend, it has nothing to report in France.

@Jean Paul Rousseau ah smart! So aside from hiring maintenance guys and a property mgmt company, it sounds to me as if there's not much in the way of intra-corp activity. If that's true, and you aren't issuing dividends to shareholders, it shouldn't be too difficult to prepare that return. I'm just speculating of course as I haven't seen the records for myself.

I'd suggest you shop them around a bit.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.