5 Costly Mistakes Real Estate Investors and Small Business Owners Make Without a CPA

[William Thompson]

Everyone loves the idea of flipping houses, wholesaling deals, or running a profitable business. But here’s the catch: the IRS loves when you go at it alone—because mistakes mean more money for them and less for you.

If you’re a real estate investor, wholesaler, flipper, or small business owner, here are the top five costly mistakes you could be making without the guidance of a CPA who specializes in real estate and business strategy.

1. Choosing the Wrong Entity Setup

Forming an LLC when an S-Corp would have saved thousands—or vice versa—is one of the most common mistakes. The wrong setup = higher taxes.

2. Missing Out on Real Estate-Specific Deductions

From depreciation to mileage to rehab expenses, many investors leave money on the table. A Real Estate CPA knows every deduction you qualify for and how to maximize it.

3. Treating Profit Like Free Cash

Too many small business owners and flippers reinvest profit without planning for tax time. A profit-saving strategy helps you scale without IRS surprises.

4. Ignoring IRS Red Flags

Flipping multiple houses without reporting correctly? That’s a quick way to end up on the IRS audit list. Proper documentation and reporting keep you safe.

5. No Long-Term Tax Strategy

It’s not just about one deal—it’s about building wealth. Without a CPA, many entrepreneurs focus on quick wins instead of structuring deals and businesses for future growth.

The Bottom Line

Real estate and small business success isn’t just about hustling—it’s about playing smart with your money. A CPA who understands your world ensures your efforts turn into wealth you actually keep.

Stop giving away money in mistakes. Talk with a Real Estate CPA today and put a strategy in place before your next deal.

Haven’t read our first blog yet? Check out It’s Not Just About Numbers—It’s About Strategy for the full picture.