Need a CPA... But where do I start!?

Rental Property Investor · Raleigh, NC · Member since 2019 · 10 posts · 3 votes

I am finally accepting the fact that I need to file for an extension and work with a CPA. How do I go about vetting one and getting on someone's schedule at this point in time? Any recommendations in the Raleigh, NC, area? (I feel like it should be someone in close proximity in case they need to see documentation.)

I've got everything pulled together and pretty much entered into the H&R Block software. But I need another set of eyes on this stuff. We are fairly new to real estate investing-- we have a couple of rental properties, and we entered into a 1031 exchange at the end of 2018.

Thanks in advance for any recommendations!

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Eamonn McElroy

Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes

@Kate Friedrick

Some CPAs/EAs will allow you to mail/FedEx your source docs to them and they will scan in. This will most likely add to your fee however.

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Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
7y
@Kate Friedrick
No need to show documents in person these days. Technology allows us to exchange documents securely online.
Browse this forum, and you will see about 20 tax accountants sharing knowledge here. Most if not all of us work nationwide. Contact a few that you like, because we're not allowed to start a conversation. But do it after 4/15, as we're underwater right now.
You will probably not be able to find an accountant willing to simply review your own tax preparation. Let your accountant prepare the return in their software. Especially due to a 1031 exchange.
By the way, if your exchange is not finished yet, you MUST file an extension anyway.
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Dan Moore
Raleigh, NC · Member since 2019 · 78 posts · 40 votes
7y
I don’t use them myself just because of a previous relationship but Ball and Minor would be who I would go to. The Balls have made their living in Real Estate for a few generations. They speak the language and walk the walk.
David's brother is a developer. His sister in law is my REI realtor, his dad was my dads partner in multiple REI deals and is my commercial broker. All this is in Raleigh.
https://ballminorcpa.com/about-us/
Just my .02.
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Kate Friedrick
OP
Rental Property Investor · Raleigh, NC · Member since 2019 · 10 posts · 3 votes
7y
@Michael Plaks, thank you! With the exception of my summaries/calculations and a few things I downloaded, all my documentation is in hard copy format. When people work remotely with a CPA, do they just scan all that stuff? (We renovated a house ourselves and there are hundreds of Home Depot receipts, for example.)
We wrapped up the 1031 exchange in February so I do have all the necessary dates/amounts at this point. Would I need to file an extension just because it crossed years?
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Kate Friedrick
OP
Rental Property Investor · Raleigh, NC · Member since 2019 · 10 posts · 3 votes
7y
@Dan Moore, I really, really appreciate this recommendation. I'm going to reach out. Thank you!
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Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
7y
Originally posted by @Kate Friedrick:

@Michael Plaks, thank you! With the exception of my summaries/calculations and a few things I downloaded, all my documentation is in hard copy format. When people work remotely with a CPA, do they just scan all that stuff? (We renovated a house ourselves and there are hundreds of Home Depot receipts, for example.)
We wrapped up the 1031 exchange in February so I do have all the necessary dates/amounts at this point. Would I need to file an extension just because it crossed years?
Sending receipts to an accountant is generally a very costly idea. There're much better ways to handle it. Each accountant has their own approach and recommendations as far as receipts.
Other documents are usually scanned. You have many apps that can help you with these chores.
No need for an extension because of a 1031, but it's needed due to timing. It's impossible to prepare a tax return by Monday, considering disorganized receipts and a 1031.
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Kate Friedrick
OP
Rental Property Investor · Raleigh, NC · Member since 2019 · 10 posts · 3 votes
7y
@Michael Plaks, got it. I have never worked with a CPA so I just didn't know what he/she would need to even start. The receipts are hyper-organized-- just not in digital format.
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Eamonn McElroy
Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Kate Friedrick
Some CPAs/EAs will allow you to mail/FedEx your source docs to them and they will scan in. This will most likely add to your fee however.
2 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
@Kate Friedrick
I asked my banker for a recommendation.
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Stanley Bronstein
Attorney, CPA, Broker & Author · Scottsdale, AZ · Member since 2018 · 532 posts · 488 votes
7y
@Kate Friedrick If you can summarize your receipts by category and put them into an Excel spreadsheet, that will probably reduce your costs, as the CPA will need to do that (if you don't do it for them).
Also, remember, AN EXTENSION IS AN EXTENSION OF THE TIME TO FILE. It is NOT an extension of the time to pay. If you owe any tax (or think you will), you need to pay it along with the extension, or you will incur penalties and interest for paying late.
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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
7y
@Kate Friedrick, All these guys @Eamonn McElroy, @Michael Plaks, and @Stanley Bronstein you're hearing from are the all star team!!! And like great accountants do they're giving you tips on how to get the benefit of a great CPA but minimizing the outlay. There is a lot you can do organizationally and structurally that will keep you busy but also reduce the gray hair for your CPA at tax time.
As far as whether you've got everything you need for the form 8824 that reports the 1031 it all depends on how your reporting and record keeping have been in the past. For the property . you sold you'll need the Date of acquisition, basis, capital improvements, and depreciation schedule to determine your adjusted cost basis. From that hopefully your QI has provided you with copies of all the 1031 documents including settlement statements and time sensitive 45 and 180 day dates. If you've got all that then you'r 1031 is ready for your accountant. If not then they're going to have to do some detective work.
The 1031 Investor5137 Reviews
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Kate Friedrick
OP
Rental Property Investor · Raleigh, NC · Member since 2019 · 10 posts · 3 votes
7y
@Dave Foster -- "the all star team"-- that is great!! I appreciate ALL of the advice. I'm filing the extension this weekend-- just hope my estimated payment isn't too far off from actual. "Detective work" has been completed. It's a matter of not quite knowing how it all fits together! Will leave that up to the professionals. I miss the days of straight-forward tax preparation before real estate investing. ha!
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Stanley Bronstein
Attorney, CPA, Broker & Author · Scottsdale, AZ · Member since 2018 · 532 posts · 488 votes
7y
@Kate Friedrick IF YOU HAVE THE MONEY, you might want to overpay on the payment you send with your extension. That way you minimize the risk of incurring penalties and interest. If you overpay, you can either request a refund when you file, or you can simply apply it to your 2019 taxes.
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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
7y
If you're looking for a great CPA in Raleigh, try @Natalie Kolodij. Real estate focused and a huge contributor here on BP
Podcast Guest on Show #244
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Kate Friedrick
OP
Rental Property Investor · Raleigh, NC · Member since 2019 · 10 posts · 3 votes
7y
@Linda Weygant, thank you so much for the recommendation! I will follow up with Natalie today!
@Stanley Bronstein, that is great advice. I filed the extension yesterday and submitted overpayment along with it. (At least I hope it's overpayment!)
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Stanley Bronstein
Attorney, CPA, Broker & Author · Scottsdale, AZ · Member since 2018 · 532 posts · 488 votes
7y
@Kate Friedrick Excellent. Also, I agree with the recommendation on @Natalie Kolodij
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Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Originally posted by @Michael Plaks:
@Kate Friedrick
No need to show documents in person these days. Technology allows us to exchange documents securely online.
Browse this forum, and you will see about 20 tax accountants sharing knowledge here. Most if not all of us work nationwide. Contact a few that you like, because we're not allowed to start a conversation. But do it after 4/15, as we're underwater right now.
You will probably not be able to find an accountant willing to simply review your own tax preparation. Let your accountant prepare the return in their software. Especially due to a 1031 exchange.
By the way, if your exchange is not finished yet, you MUST file an extension anyway.
@MIchael Plaks normally I'm in agreement with you, but your comment "Technology allows us to exchange documents securely online." isn't the approach I take anymore because of:
1. IRS Hack Affects More Than 100,000 Taxpayers
https://www.entrepreneur.com/article/246672
2. Hacks of OPM databases compromised 22.1 million people, federal authorities say
Two major breaches last year of U.S. government databases holding personnel records and security-clearance files exposed sensitive information about at least 22.1 million people, including not only federal employees and contractors but their families and friends, U.S. officials said Thursday.
The total vastly exceeds all previous estimates
3. Equifax filing reveals hack was somehow even worse than previous estimates
The 2017 hack of Equifax, already among the largest ever recorded, just got bigger.
Today’s information was filed with the Securities and Exchange Commission as part of the company’s disclosures regarding the hack. It provided first a handy table listing what was stolen as raw strings of data from Equifax’s inadequately protected databases:
- Full name: 146.6M
- Date of Birth: 146.6M
- Social Security number: 145.5M
- Full address: 99M
- Gender: 27.3M
- Phone number: 20.3M
- Driver’s license number (incl. 2.4M partials): 17.6M
- Email address: 1.8M
- Credit card numbers (with expiration dates): 209,000
- Individual Tax Identification Number (ITIN/Tax ID): 97,500
- Driver’s license state: 27,000
Previous estimates of driver’s license numbers leaked were around 10.9 million, and total affected put at 143 million. Sure, the difference between 143 million and 146.6 million is relatively small, but it’s still 3.6 million people.
Secondly the filing includes a table listing images stolen by the attackers. These were “uploaded to Equifax’s online dispute portal by approximately 182,000 U.S. consumers,” the document says.
- Driver’s license: 38,000
- Social Security of Taxpayer ID Card: 12,000
- Passport or Passport Card: 3,200
- Other: 3,000
And many more . . .
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Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
7y
@Account Closed
So your suggestion is to attempt to hide from technology in 2019?
All of your confidential information is already online: financial, medical etc. As your own story confirmed, that information can be, and has been, stolen from the government agencies, credit bureaus, insurers, retailers, medical providers etc.
Responsible tax firms employ the strongest protection available today. It's not bullet-proof, but it's as good as anything else.
You can continue to hand-deliver documents to your accountant, but where does it end up? In the IRS computers - which have been compromised.
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Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Originally posted by @Michael Plaks:

@Account Closed
So your suggestion is to attempt to hide from technology in 2019?
All of your confidential information is already online: financial, medical etc. As your own story confirmed, that information can be, and has been, stolen from the government agencies, credit bureaus, insurers, retailers, medical providers etc.
Responsible tax firms employ the strongest protection available today. It's not bullet-proof, but it's as good as anything else.
You can continue to hand-deliver documents to your accountant, but where does it end up? In the IRS computers - which have been compromised.
The U.S. Mail is still alive and kickin'. The mail doesn't get hacked. Better to have only one weak point (The IRS) than multiple weak points.
Were you aware that if someone falsely files a return on someone and collects a refund, the IRS is powerless to do anything about it and the person's refund is simply gone? That is a very serious problem with no foreseeable solution.
The next target
As the IRS and the others ramp up their safeguards, identity thieves are now targeting tax professionals, human resource departments and payroll officers to get more data – such as copies of W-2 forms – to put together more authentic-looking tax returns that will slip through the defenses.
The group is working to alert those professionals as well as continuing to warn taxpayers as well. For instance, don’t trust anyone calling claiming to be from the IRS. Also, be wary of odd tax emails. The number of unique phishing schemes has jumped this year versus last, Lemons said.
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Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
7y
Originally posted by @Account Closed:

The U.S. Mail is still alive and kickin'. The mail doesn't get hacked. Better to have only one weak point (The IRS) than multiple weak points.
You kidding me? The mail does not get hacked, but it gets lost and stolen
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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
7y
Podcast Guest on Show #244
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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
7y
Originally posted by @Account Closed:

The U.S. Mail is still alive and kickin'. The mail doesn't get hacked. Lemons said.
Tell that to everybody that lives in an HOA or apartment complex and has gone to check their mail and found the whole block of boxes pried open with a crowbar.
My friend, you need to go live in a cave.
Podcast Guest on Show #244
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Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Originally posted by @Linda Weygant:
Originally posted by @Account Closed:

The U.S. Mail is still alive and kickin'. The mail doesn't get hacked. Lemons said.
Tell that to everybody that lives in an HOA or apartment complex and has gone to check their mail and found the whole block of boxes pried open with a crowbar.
My friend, you need to go live in a cave.
Maybe you misunderstand how the mail system works. When you *file your taxes through the US Mail you drop the envelope into a mailbox at the post office where it is picked up every few hours by the postal service. You don't put it into some random HOA or apartment complex box. The USPS has chain of ownership all the way to the IRS.
Besides, the likelihood of an IRS check *arriving at an apartment complex box on the very day it is broken into is rather like being struck with lightning. Does it happen? Sure, but very rarely. However, it is obvious someone has broken in so you know to look for what may be missing. And a police report is filed so you have something to back up your claim. If that is happening in your apartment complex it's time to move.
Contrast that with someone having all of your information online and you wouldn't even know it. They can sit on it for 6 months before using it or they can file for you next season in January before you do and get your refund before you have even filed.
These are very, very different levels of risk.
And you as a C.P.A., who I presume is dealing with people's personal information, to treat it so casually is rather alarming.
(Besides, I like my cozy cave, I have a great view of all the chaos the rest of you endure. ;-)
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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
7y
@Account Closed' comment about document sharing with a CPA.
Now suddenly it's about dropping your tax return in a box to the IRS.
Sorry - I didn't understand that you're just a contrarian and a troll. Have at it. I don't feed trolls.
The odds of an HOA mail box being hacked at the time of an IRS check..... yeah, no. I sit on the board of 3 HOAs. Two years ago, two of the communities had their mailboxes broken 4 times between Feb and April. We'd fix it, they'd break it again. The post office finally refused to deliver to both complexes until a permanent solution was found. Two people came to the next annual meeting complaining that their tax refunds had been stolen during that time period. So try not to be so smug.
Lastly, I absolutely do not treat my clients' data security casually. I use best recommended practices for such data transfers, am covered by my insurance company for identity theft issues stemming from my practice and generally am very careful. I have a very reputable IT Security company that I contract with to ensure it all stays secure to the very extent possible given technology today and I will thank you to not slander me or my company's dedication to client data protection.
Podcast Guest on Show #244
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Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Originally posted by @Linda Weygant:
@Account Closed
Nice moving the goalposts. Your response was specifically with regard to using the mail service to get documents to your CPA. You specifically replied to @Michael Plaks' comment about document sharing with a CPA.
Now suddenly it's about dropping your tax return in a box to the IRS.
Sorry - I didn't understand that you're just a contrarian and a troll. Have at it. I don't feed trolls.
The odds of an HOA mail box being hacked at the time of an IRS check..... yeah, no. I sit on the board of 3 HOAs. Two years ago, two of the communities had their mailboxes broken 4 times between Feb and April. We'd fix it, they'd break it again. The post office finally refused to deliver to both complexes until a permanent solution was found. Two people came to the next annual meeting complaining that their tax refunds had been stolen during that time period. So try not to be so smug.
Lastly, I absolutely do not treat my clients' data security casually. I use best recommended practices for such data transfers, am covered by my insurance company for identity theft issues stemming from my practice and generally am very careful. I have a very reputable IT Security company that I contract with to ensure it all stays secure to the very extent possible given technology today and I will thank you to not slander me or my company's dedication to client data protection.
I will be patient ;-) You are referencing what Michael said, not what I said. I said "The U.S. Mail is still alive and kickin'. The mail doesn't get hacked. Better to have only one weak point (The IRS) than multiple weak points." I was Specifically pointing out that dropping your return in the US Mail was safer. In fact I would advise all Tax Return preparer's to do just that. Use Certified US Mail to the IRS.
You inferred something from Michael's comment that I didn't say.
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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
7y
@Account Closed
You said "@MIchael Plaks normally I'm in agreement with you, but your comment "Technology allows us to exchange documents securely online." isn't the approach I take anymore because of:"
Michael Plaks was specifically talking about getting documents to a CPA.
If you were suddenly making the switch that nobody should do ANYTHING tax related in any manner other than in person or by post, then that was definitely not clear because that is not what Michael was talking about.
It was a total non sequiter for Michael to be talking about CPA document sharing and you suddenly to be going to the entire tax filing process, but ok. I guess if that's how your brain works, that's fine.
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Need a CPA... But where do I start!?

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