CPA (with real estate experience) in or around Ogden, UT

5 Replies

I am looking for a knowledgeable CPA to talk to about the ins and outs of real estate tax.  My wife and I started flipping houses, we are on house number 3 at this point and want to ensure all of our ducks are in a row.  The market is hot here in Utah and we plan to flip 2-3 houses a year, our big concern at the moment is capital gains tax.  While we are not worried about paying the tax, we would just like to make sure we are doing it the best way possible and not missing out on any tax breaks.

Thanks in advance--Robert

@Robert Watts - You are definitely in the right place. There are many CPAs here (including myself) that work with clients across the country, so you're likely to find one that's a great fit.

I will mention that flipping homes are taxed at ordinary income rates rather than capital gains and are also subjected to the self employment tax. 

Because of this as you mentioned, it's great to speak with a real estate CPA that can help you navigate the tax code.

Best of luck on your search!

@Robert Watts - These days, it's far more important to find a CPA that specializes in real estate and you work well with, than one that is local. Pretty much everything can be done remotely.

However, for attorneys- definitely use one that is local, as they will be an expert in the more nuanced local laws.

Originally posted by @Robert Watts :

I am looking for a knowledgeable CPA to talk to about the ins and outs of real estate tax.  My wife and I started flipping houses, we are on house number 3 at this point and want to ensure all of our ducks are in a row.  The market is hot here in Utah and we plan to flip 2-3 houses a year, our big concern at the moment is capital gains tax.  While we are not worried about paying the tax, we would just like to make sure we are doing it the best way possible and not missing out on any tax breaks.

Thanks in advance--Robert

Hey Robert, I messaged you. I may have some CPA’s that you can reach out to.

@Robert Watts

I hope you did not miss the critical point mentioned by @Alan Rohrer : there are NO capital gains when you are flipping. Capital gains apply to rentals, not to flips. Everything related to capital gains, such as depreciation, cost segregation and 1031 exchanges - none of that applies to you.

The most important "strategy" to minimize taxes in flipping is to diligently record everything you spend, and also assign each expense to a specific property or to general business overhead.

Depending on your numbers, you may also want to do some proactive tax planning.

This is why, just as Alan suggested, the most important thing is expertise, not physical location. Being local is a bonus, but only if that accountant has real estate expertise. If you're open to a remote service, there're about 20 accountants specializing in real estate on this very forum.

Best luck!