How Do I Find a Good RE CPA for Taxes?

Question

Hello -

First time investor here with a somewhat complicated tax situation (well, complicated to me anyway, lol).

I am the primary investor / money-man, just started my investments in September 2015, and my rental properties are being managed by 2 separate managing partners in Wisconsin, while I reside in Illinois and have a full time job in an unrelated industry.

Both rental business partnerships are under LLC's, and the LLC's are pass-through entities for tax purposes. I received a 1099-Misc from one partnership, reporting the net rental income received for 2015. I received no income from the other partnership, as it is not yet profitable. I have also received my W2 from my day job. No other investment income of any sort (besides a puny bank account interest).

My main need right now is someone to help me file my personal taxes and make sure I've reported everything correctly, taken all deductions I'm entitled to, and offer tax guidance for the future. So, I'd like to find a good CPA to work with long term. Does he need to be local to my area? Are the local tax chains (H&R Block, Hewitt Jackson) good enough? What about online resources like TurboTax?

Would appreciate any advice and references. If you are an available CPA yourself, please message me with contact info and rates. I have all my financial documents in order and am looking to file my taxes before April 18, 2015, of course.

Thank you very much,

Dave

Adam Kozuch · Answer

My RE situation is probably a lot less complicated than yours but I used @Steven Hamilton II this year and have been very pleased so far.

Brandon Hall · Answer

@Dave Lion I don't know of many quality CPAs that will onboard you and file your taxes by the 18th. I'd seriously recommend filing an extension and shopping post-tax season for a CPA to work with. This shouldn't be a hasty decision for you, nor should it be a hasty decision for the CPA.

I do suggest finding a CPA to work with. Don't use TurboTax or HR Block. Both are effective when taxes are simple and I often refer clients to those services when they don't quite need a CPA. However, once you begin acquiring property, especially via partnerships, everything becomes much more complicated. So your concerns are justified.

Right now is crunch time for CPAs. You may be able to find one to squeeze an initial consult, engagement letter signing, tax organizing, document transfer, and tax prep into their schedules, but I'd be really surprised. Onboarding should be slow and deliberate, just like you wouldn't partner with any investor, you shouldn't partner with any CPA.

Tek Chai · Answer

Dave, there's a recent BP podcast on CPAs and taxes. Amanda Han gave some wicked good tips on being a savvy investors. You may want to check out at BP podcast 162 and 049.

Tek Chai · Answer

You may also want to check out

The Book on Tax Strategies for the Savvy Real Estate Investor by Amanda Han and Matthew MacFarland

Mark Welp · Answer

Dave,

I agree with Brandon above on all accounts. I am a CPA in Columbus Ohio and our firm could assist you, however, we really do not take in new clients during the March or April timeframe; not enough time to finish. File an extension and then shop for a good CPA or firm who could assist you.

Thanks!

Brandon Hall · Answer

@Dave Lion it depends on your comfort level. I run a virtual (paperless) practice, so my clients must be comfortable working virtually. This has it's advantages - I can work with anyone, anywhere. It also has its disadvantages - I can't shake my client's hand.

It also depends on what exactly you're looking for in a CPA. Are you looking for a generalist? Are you looking for real estate expertise? There may not be a real estate savvy CPA local to you.

Then you have the question of expanding your network. If you work with a non-local CPA, chances are you'll be able to tap into the CPA's non-local network. This could be priceless to you. If you work with a local CPA, you'll be tapping into a local network. Just depends on your goals.

Scott Schultz · Answer

Good Question, get referrals, im working with a new guy, and am reading Tax Free Wealth by Tom Wheelwright (Rich Dad Advisor) when im done, I will give it to him, then when he is doen with it, we will have a meeting, and go from there, nt sure how else to weed them out. Good Luck.

Dave Lion · Answer

Thanks Tek!

Dave Lion · Answer

Thanks much for all the advice. I just e-filed my extension.

How Do I Find a Good RE CPA for Taxes?

How Do I Find a Good RE CPA for Taxes?

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