1 rental property is cpa needed ?

Question

Jeff B. · Answer

I've never taken a retainer relationship with a CPA, but always used one since taking on REI.  Bookkeepers and Turbo software barely scratch the surface, even for just one unit.

Take to a pro and learn to do it right and sleep well when you file.

Natalie Kolodij · Answer

I don't wanna be .."That person" but everyone who's just following prompts in turbo tax type software I'd bet dollars to Doughnuts I can find at least one mistake, tax disadvantage, missed deduction, ect.

You can tell me things as a person that I'll take into consideration and create a strategy which is the big thing software can't do. If I know your 1,5,10 year plans, your goals in RE, there's different strategies to take. There are tax laws to follow- there's also gray areas and sometimes multiple elections you can make to handle something differently if you can justify it and it will be to the benefit of your big picture goal.

CAN you just file with some online software- sure. By wouldn't it be worth it to toss aside $35 a month all year and pay a CPA to file that return with that one rental instead? * A good CPA who knows RE investing.

Dina Lewis · Answer

If you have just one rental property and already is doing your taxes, you can just follow instructions in your tax program. I use H&R Block online and basically just follow the program step by step.

David Dachtera · Answer

@Nate Denning,

I'll second @Christopher Cousin's vote for Mark Kohler. He's my accountant, and also teaches the two-day Tax and Legal class in the education to which I'm connected.

Unless you're a tax expert, hire someone who is. You'll have more rentals eventually. Start building that relationship now.

Christopher Cousin · Answer

@Nate Denning The true value in working with a qualified CPA is in tax planning.  Anyone can plug numbers into a computer program, but a qualified CPA can help you to set up entities and provide advice on how to conduct transactions in a way to minimize your taxes.  You definitely want to talk to a CPA that specializes in RE. A good resource for tax and legal education is the Mark Kohler podcast.  I wish you the best with your investing.

Jeff Keller · Answer

If you are planning on building substantial real estate investments, you might be better off talking to a financial planner who can get you set up with a good strategy for managing all of your different investments in a way to minimize taxes for both yourself and your eventual heirs.

A fee for service planner, who is very knowledgeable about taxes would typically be much better than a financial planner who makes his income from recommending specific mutual funds or other group of investments.

Preparing your taxes using TTax then occasionally having your return reviewed by a tax expert could give you ideas that would save you money. Many tax consultants can import your TTax return into their own software.

Christopher Blanco · Answer

CPA's do more that your taxes. Mine helped me organize my business to maximize tax savings, even before I had a single property. Plus at $600 a year for unlimited support, strategy, and taxes (business and personal) its well worth it.

Costin I. · Answer

Get this book and read it (http://store.nolo.com/products/every-landlords-tax-deduction-guide-dell.html), and you'll know more than many CPAs about the subject. Or find one that knows real estate investing. Unless you get into fancy stuff and many rentals (3+) you should be able to handle it with TTax Premier edition. Just my 2¢.

1 rental property is cpa needed ?

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