Questions to ask an accountant
So I recently set up an LLC with Legal Zoom and completely forgot that with my purchase I get a complementary 30 minute consultation with a tax accountant. I'm not wanting to waste the opportunity but for the life of me I'm not sure what questions to ask first. If you had a 30 min free consult with an accountant, what would you ask?
Probably about their hobbies and family ;).
Assuming you are starting a business and its in real estate you may want to ask at what level does a tax return need to get filed; company or personal. So get an understanding of pass through entities from them, which an llc is.
Ask what paperwork you need to save and how to save it during the year so that can eadily have your taxes filed.
Ask about 1031 exchanges if you intend on selling real estate holdings and want to delay paying taxes on earnings.
Ask if they have recommended local CPAs in your area that has experience in real estate.
I imagine this "free" 30 minutes is an upsell to try and get you to hire this cpa but you can still take the time to ask their fees or standard fee structures in hiring a cpa.
Good stuff thanks!
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
@Eric Smathers, I'd spend the 30 minutes focusing on the various taxation structures for your LLC. It is possible for that LLC to be taxed as a disregarded entity (no tax return and all activity on your personal return), a partnership (with a return and K1s to members) or as an S corp (with payroll responsibility to officers). Each has it's uses and pros/cons. That's the kind of stuff you don't want to just pick up on the street.
Nothing against us as an industry, the 1031 but you can get accurate 1031 information for free from all kinds of intermediaries. Don't use your free time for that.
@Eric Smathers, hello. I have not done an LLC and depend on an umbrella liability policy for protection. I am retired and use buy and holds for added income.
You should explain you other income stream and how your new REI investment and planned investments are envisioned for income. Have you done a Schedule E? The form will give you all the categories of expense that are written off for you rental. If you are a Turbo Tax (TT) user, an upgrade to the version that does rental properties will handle you for several rentals.
I even managed a 1031 with TT but had to get CPA consultation help understanding the question of TT and how it should come out.
Just some thought.
Cheers,
Buddy
Thanks everyone...
@Eric Smathers, I know that you said you have already set up things with an accountant and based off of how long ago you posted this thread you may have already had the conversation with them(?) I am not trying to sell you on the book, but I just purchased it myself and I HIGHLY recommend you taking a look at getting it as it was a complete EYE OPENER in the way of how I looked at taxes as it relates to not only my REI business (I have an LLC as well) but my personal tax returns as well. The book on "Tax strategies for the Savy Real Estate Investor" presented by BP and written by @Amanda Han and her husband that run a successful CPA firm in California! I personally reached out to Amanda and requested her services as it is quite apparent that they are not only REALLY GR8 CPA's but also invest in RE as well.
So getting back to point, if you haven't already done so please pick up the book and there is a TON of GR8 info that you can ask your accountant as it relates to your LLC (as the book covers business entities). I have recently reached out to Amanda via BP and I am in the process of setting up a consultation with her CPA company for taking care of my TAX needs. Hope this helps and I most certainly wish you nothing but success in your 2017 REI ventures! Thanks for allowing me to share.
I just purchased it. Thanks!