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

[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

[Michael Plaks]

@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!