I recently just purchased my first investment property and I am currently house hacking. I am looking for recommendations for CPA's who are literate in real estate to help with tax strategizing and preparing taxes.
Pls share if you find someone
House hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.
You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion
Are you open to working with your accountant remotely? I recommend finding an accountant who specializes in real estate taxation over one that is local. You may want to consider working with your accountant remotely to expand your options.
I would also recommend looking for a tax strategist who is willing to work with you throughout the year, not just when preparing your tax return. You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.
Good luck and let me know if you have any questions.
If your CPA can save me taxes then why not.
Alexander , can you pls refer your CPA to me as well , I am PA based and have a couple of LLCs and commercial / residential investments and at a point where I think I need professional advice