Do you really need a Tax Attorney?

6 Replies

When just starting out with fix & flips is it necessary to engage a tax attorney or will a real estate savvy CPA be able to assist with all we will need? 

Can anyone recommend a CPA that is a real estate investor himself?

We will be starting out in Norcal (Central Valley - Modesto - Manteca - Stockton - Lodi - Galt) and/or Reno. 

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@Dustin Burke A good CPA would tell you to consult with an attorney for any matters pertaining to asset protection, drafting operating/partnership agreements, etc.

Not sure you need a tax attorney unless you have some tax controversy or complex situation where you need an opinion or memo prepared (doesn't sound like it) but rather a good business attorney who works with real estate investors.  If you need one in California, I have a good one.

For tax questions, you want to consult a CPA. CPAs are trained in the complexities of taxes.  Attorneys do not know any more about taxes than the average person.  Even "tax attorneys" are typically attorneys that defend you against IRS audits and lawsuits, not typically people you want to go to for specific tax advice.

As @Logan Allec said, you want an attorney for forming business entities like LLCs for asset protection, or for drafting any contracts or agreements necessary for your flip business (partnership agreements, etc).

@Dustin Burke . 

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@Dustin Burke

Most tax attorney's I know specialize in the following
  1. Represent US taxpayers in regards to foreign assets that have no been disclosed to the IRS on past tax returns
  2. Substantiate Transfer pricing costs between countrties

You likely don't want a Tax attorney for real estate activities.
A real estate attorney should be able to do the following for you

  1. review a purchase/sale of real estate agreement
  2. create an agreement for an entity
  3. consult you on asset protection
  4. evict a tenant

A CPA should be able to do the following for you

  1. provide tax strategies
  2. complete your tax compliance which provides you comfort that your return is prepared accurately.
  3. bookkeeping
  4. business consulting/budgeting

@basit thank you for this info...

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