How do I find a Real Estate Tax Accountant

Question

I just purchased my first property yesterday at a tax deed auction. I always thought I would buy, then sell for a profit in the same tax year. But since it won't be sold until next year, I need someone to explain to me how it works for 2016 and 2017 taxes.

I live in Los Angeles County, CA

Anyone have good personal experience with a specific professional?

Can anyone tell me how to find whom I am looking for?

Thanks

Mike

Natalie Kolodij · Answer

I would disagree with Fulton.

Holding it for 25 days of 2016 and then x amount of days of 2016 won't necessarily reclassify the tax. As he said it's holding for an actual 365ish day year.

Is this a flip? If so, I doubt you want to accrue holding costs for an entire year just to hit that qualification for tax purposes.

Go to a local Real estate Investment group meeting. Find actual experienced investors (people who do this for a living) and find out who they use.

You also don't need a local CPA and can have one remotely as well. I know an excellent CPA who's based out of San Diego who specializes in complex entities and development if you'd like his information.

Cameron Skinner · Answer

I always say find a licensed tax professional that specializes in real estate, someone with some letters behind their name, and some one who owns investment real estate themselves.  A good professional will save you much more in tax savings than you will ever pay them in fees. You might want to listen to me on podcast show 168 we touch on some tax strategies.  I'm not taking on any new clients but if you private message me I can give you a referral

Fulton Abraham Sanchez · Answer

@Natalie Kolodij, how are you? I meant to kept the property for over one year in 2017 to get capital gains treatment.

Natalie Kolodij · Answer

Sure I'll send you a PM

Michael Strauss · Answer

Thanks Natalie, can you give me the CPA's contact info?

Lance Lvovsky · Answer

@Michael Strauss To answer your question, it is best to get a CPA who invests in Real Estate and understands the industry. In addition, a CPA who can provide business advice in addition to tax advice will go a long way. You need someone who can provide sound financial planning while also incorporating any estate planning you may desire.

Fulton Abraham Sanchez · Answer

You are welcome @Michael Strauss. Happy Thanksgiving

Michael Strauss · Answer

Thanks Fulton, I appreciate the reply.

Fulton Abraham Sanchez · Answer

@Michael Strauss how are you? Better if you keep it for a year to sell it, otherwise you will pay regular income tax instead of capital gains tax.

For 2016 tax year, you have an asset. It property is rented you report the rent income and the expenses. Large improvements such as A/C units, roof, etc are capitalized and depreciated. Next year that you sell it the pice purchased plus improvements will be your base minus sales price to determine capital gain.

Hit me if you have more question.

How do I find a Real Estate Tax Accountant

Most Popular Reply