Hello BP Community,
I am new to real estate investing and am doing my first house hack in the Providence, RI area. I am currently in the process of building my team and am looking for a CPA that has experience working with real estate investors to help with long term tax strategy. Do you guys have any recommendations? I know from other forum posts that we beyond RI for a good CPA with real estate investment. We've had a couple great conversations with CPAs out of state, but have been quoted from $1800 to $3000 for tax planning and filing 2020 returns. We have one property that we are house hacking, so not sure if these quotes are typical or not. Any advise would be greatly appreciated.
@Gabriel L. I can give you a couple of local folks, and a couple out of state too if you like, to interview/consider. I agree that those dollar amounts sound high based on your simpler situation at the moment.
@Anthony Thompson That would be amazing and greatly appreciated!
Hey Gabriel, I can share a contact that you can reach out to. For your situtation, I would be surprised if your getting charged more than $200/$300.
I recommend finding an accountant that 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 I can be of assistance.
I pay around 1,000. I have multiple properties and 2 business. I highly recommend someone that is skilled in real estate. Just like doctors, not all accountants are the same. My accountants specialize in real estate tax. I also appreciate that they give me advice on how to do future deals and take advantage of tax law. DM me if you need a reference. Best wishes.
@Bill Hampton Thanks. Yeah, we definitely open to out of state CPAs or EAs, and definitely want someone to help with Tax Strategy.
@Jonathan Small Thanks so much for sharing how much you pay. Will DM you for the reference.
Prices you've been quoted are along the lines of what my firm would charge. $1,000 for Fed/state tax returns with multiple properties plus 2 businesses plus tax planning advice, as mentioned by @Jonathan Small, is an insane bargain. If his tax referral is able to stay in business with such low rates AND are actually good at what they do - then you'd be very very lucky.
I don't think you are at the stage where you need any outside help. Perhaps later you will. If it does make you feel better to do so, get one who specializes in real estate as others have mentioned or don't do it at all. I will recommend my favorite book on the subject, which is "Every Landlord's Tax Deduction Guide" by Stephen Fishman J.D.
@Kevin P. Thanks for the tax book recommendation, will look into that!