Looking for recommendations to a CPA that is real estate investor savvy and friendly. Want to figure out the best ways to give myself a tax shelter from any self-employed income I receive. Anyone know someone good?
Jeffrey, sheltering against self-employed income is huge! Good plan. Whoever you end up partnering with, make sure you find out:
1) The value of an S-Corporation. This can allow you to divide your income earned between wages (subject to SE tax) and dividends (not subject to SE tax). Depending on the amount of commission income you receive, this may be the first step to take that causes the highest impact on your tax return.
2) How a SEP IRA plan may help you out. The details of how a SEP IRA plan will impact your taxes depends on whether or not you file as self-employed (Schedule C) or as an S-Corporation as well as whether or not you have any employees on your team.
3) How to keep good records. Keeping track of ALL your expenses is going to be HUGE. Not keeping good records is probably the #1 stupid silly way that investors, business owners, realtors, etc. pay more in self-employment taxes than they need to. Meals and travel costs are commonly overlooked in record keeping. CPAs should be asking you about your bookkeeping needs - what do you do yourself/what would you like to outsource? Here is a quick read that might help you gauge what stage you are in.
Here's an article loaded with good questions for you to ask potential CPA partners
I'm a CPA myself, so I would rather let other investors answer your question "Anyone know someone good?"
one of the best ways to shelter your self-employment income is a Solo 401k plan, which would allow you to shelter up to $54K per year (this is just one of it's many benefits)!
Depending on your tax situation, an S Corp may be beneficial. I assume self employment income comprises a large percentage of your income. You should discuss with a CPA who understands pass through taxes, real estate taxation, and can provide you with recurring tax planning services. Good luck with your search.
Jeff - One way to outsource your needs is to hire a virtual assistance. This is a great way to delegate tasks such as accounting, marketing, cold calling, and other needs, so you can focus on more financially rewarding tasks.
Thank you guys very much for your input. I am sorry for the delay thanks. I will be reaching out to you.
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