I'm about to start investing in some out of area SFH rentals and I'm looking to hire a CPA. I will probably invest in multiple states at some point. Is it best to choose someone from my home market or does that really matter? Does the CPA need to be licensed in all the states I might invest in or just the one I live in. Any help will be appreciated. If anyone has any referrals for the Denver area please send them my way. Thanks
CPA can practice taxes in all states of the USA. Key here is to look for CPA with real estate tax planning experience.
Hi @Jared Zanon
The CPA does not need to be licenced in the state that you invest in. The only reason CPA's become licensed in more than one state is to provide an audit opinion of a company(I don't want to go too much off-topic so i'll leave that there).
I understand that the CO market has become very hot. I can't blame you for looking out of state. Do you have an idea of what states you may be investing in?
As Jay suggested above - you should pick a CPA with real estate tax planning experience. Even if you select a CPA that is across the street from you - the chance is that you will likely be communicating with him/her over phone & email.
It is important that the CPA does understand the state/local tax laws that you plan to invest in.
There may be some added complexity when you invest in multiple states. You are required to pay taxes in those states if you have income or you are required to properly carry forward an Net Operating Losses to you can utilize them if you dispose of the property.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.