Investor · Port Hueneme, CA · Member since 2017 · 73 posts · 34 votes
So I met with a CPA yesterday (whose name I got from Bigger Pockets actually) in my area. I loved him about as much as a straight man can love another man within minutes. Downside is... He charges about $750 per year to do taxes. He admitted up front the fee was high for most folks, and that his services were usually for folks pulling income from multiple states and sources, who had complicated returns. As of now I have 2 homes, trade some stocks, and am married without kids so far. My taxes are complicated enough to shop for CPA's, but not so simple that I want to do them myself.
So with that over-explained context in mind, how do you do your taxes every year and what does it cost you?
CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
8y
@James R. Copeland I think you need to look at what you are getting. Does he charge for emails? What is his rate for phone calls?
Keep in mind that a return prepared by a CPA is viewed more favorably by lenders.
For two rentals and stock trades, I’d probably charge $600-700. But we don’t price per return anymore. Our minimum annual rate is $3,000. We bundle services up, such as email support and strategy calls in that $3,000.
I did this because I recognized that tax prep, while a valuable service, isn’t where you get the “bang for you buck.” Tax strategy sessions are where you save money, adjust your plan, etc. If you are trying to save money during tax prep, it’s already too late.
I think $750 is somewhat reasonable. The real question is: what does he charge for tax strategy? That’s where you’re going to save money. Not during tax prep.
By the way, if you got along with him and he’s super responsive, you should fork up the $750 in a heart beat. We win a lot of clients from CPAs and EAs on BP simply because they are not responsive. People are happy to pay a higher price for someone that will answer their questions quickly. Don’t get sucked into saving $250 by hiring someone who takes two weeks and three follow ups to answer your question.
@Joel O'Leary , @Karen Young Would you mind sharing your CPA's info to me as well? In the same boat -- looking for a good CPA who knows about real estate and does tax planning.
@Joel O'Leary - I'm from Los Angeles also and am getting ready to get my feet wet with some out of state real estate investing. Would you mind sharing your CPA contact? I would love to speak to someone who has experience with working with investors. Thank you in advance!!
You're posting on a forum that features 20+ such accountants. All of us work nationwide. Read the forum, see who answers questions and how, and contact privately those experts whose knowledge and personality you like. This way, you will have choices.