Real estate CPA for tax filing

[Yuki Nowak]

Hello!

I'm seeking recommendations. Since I started my first real estate investment in 2023, this year's tax return will be completely different from before, so I'm looking for a specialized CPA. If you know of a great CPA who specializes in tax returns for beginners in real estate investment, please let me know. I've been filing my W2s myself using TurboTax until now, so I'm not sure about the typical rates for hiring a CPA. What would be the general price range?

I have a disregarded LLC and W2.

TIA!

[Zachary Jensen]

Hey @Yuki Nowak, congrats on getting into real estate last year. Pricing can vary greatly from a few hundred to a few thousand depending on who you go with. 

Given we are accountants, we cannot promote our services on BP as its against the rules.

To help in your search:

be sure to find an accountant who is willing to grow with you, and is not too high priced fee-wise. Not too low either, you don't want to go with someone who is just focused on price as this is a quality of a not-so-great accountant. Accountants are in such demand, that the best are not even accepting clients half the time.

The other problem I see often with accountants on here is that they specialize in larger investors, and have really high prices when you as a smaller investor do not need all the bells and whistles.

Another thing I see is folks thinking they need to have a tax professional in their state. We as a firm have investors working with us who have rental properties all over the US big and small.

Finding a real estate-focused tax professional and one who can help with advisory and grow with you would be my suggestion to focus your efforts on finding. Best of luck in your search!

[Michael Plaks]

@Yuki Nowak

You can find 20+ of specialized tax professionals right here on this forum, by browsing it and seeing who answers tax questions and how. We all work nationwide. However, we're prohibited from offering you our services, publicly or privately. You need to identify people you want to work with yourself, and then initiate the contact from your end. 

There's no typical rates, it varies widely, and here is why: 
https://www.biggerpockets.com/forums/51/topics/998718-explai...

[Benjamin Weinhart]

Hi @Yuki Nowak,

Others have spoken on typical advantages of why working with a remote preparer may be beneficial but I can speak to the fees portion myself. Of course, going with a huge national firm such as Deloitte, EY, BDO, etc would charge in the thousands at minimum for many of their clients, but you also get all of their very substantial resources. 

However, you almost definitely don't need all of that and you may be better served by browsing through various CPAs who post on the forums/in the businesses search section. Also, another reason why remote may be more helpful is that a CPA who works remote from a lower cost of living area may have lower fees than someone based in central Manhattan for example. This isn't true all of the time of course, but I've seen it to generally be the case. Hope I helped!

[Nate Meeker]

@Yuki Nowak The price range for a CPA is really going to vary depending on what you would like them to do for you... 

Like any trade, you need to get a few quotes, ask what they specialize in, and see if you are a good fit.

As far as location, it doesn't really matter, the IRS is nationwide and from there states add or subtract their rules.

Be careful of firms trying to sell you on $5k plus packages and complex entity structures. Someone with one property will benefit greatly from $1,000-$3,000 worth of professional tax prep and consulting.

I would not recommend anyone to do their own taxes unless they only have a W2. Similarly, a doctor would only recommend you apply a bandage to a small cut versus do your own stitches on a large gash.

[Bill Hampton]

@Yuki Nowak

I recommend finding a tax strategist that specializes in real estate taxation. You may want to consider working with your tax strategist 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 in your search.