Under contract for 1st rental, when CPA?

Question

I just went under contract for my first Multifamily rental. Assuming all goes well with the close I’m in the GAME. WOOHOO!! 🎉 I have had high level discussions with CPAs already but haven’t identified one yet. I want to know when I should bring on a CPA? Is there things I can do right after closing that can help me leverage tax advantages? Or should I just proceed without a CPA and worry about that later?

Thanks gang.

Jessica Zolotorofe · Answer

Hi @Ed Beder! Congratulations! If you have been consulting with CPAs, that's probably a great question to ask them, but I would find one you are comfortable with now to find out how they suggest you take title to the property, whether there are any tax advantages to an entity as opposed to taking title individually, whether there are any tax benefits to certain home improvements, certain tenant income reporting, etc. I'm far from an accountant, so just throwing some potentials out there! Then when tax time comes, someone already has all of your info (closing statements, rent rolls, an understanding of the property and what you can report for deductions, etc) and the process is seamless. If you have an attorney, they can also work closely with your accountant and that helps come tax time, too, and for suggestions on the best way to handle transactions to maximize your tax benefits. Wishing you the best of luck on your new adventure!