CPA help Needed
I have a few questions first:
1. Does it make sense to have a CPA with 2 rentals?
2. I didn't do the 1099 this year for my tenants, what would be the best plan for this year and forward?
I'm looking for someone I can build a good working relationship with going forward, highly recommended, and that is a reasonable price for the work being supplied. Hopefully they could help me out throughout the year on tax changes, pointers to help future taxes, etc.
I'll take any information or recommendations.
Thank you in advance!!
Most Popular Reply
Based on your 2nd question, I'd say you're already at the point where you may need guidance from a professional. Landlords don't 1099 tenants. I'm wondering what else you're misunderstanding/reporting incorrectly on your tax return.
BiggerPockets now has a CPA referral page:
To me it makes sense even with just one property. Yes, interact with my CPA throughout the year. When my accountant tells me I need to 1099 tenants I will do that-he hasn't. I highly recommend developing a relationship with your CPA. I have had the same one for over 30 years.
@Adam Young I am located in Frisco, TX. I have an MS in Accounting, a CPA license, and prepare tax returns for real estate investors. Also I'm friendly and easy to work with.
1. I think it is manageable to prepare your own return with 2 rentals and W-2 wage income. But when it isn't worth the hassle to you or you are unsure if you are doing it correctly you should seek a CPA.
2. I haven't seen any of our Landlords provide their tenants 1099-Misc for rental income received. If anything the Landlord would be the recipient of 1099-Misc Rental income. We do prepare 1099s for payments over $600 to contractors and vendors for our Landlord clients.
In our industry prices have increased substantially because of retirements and lack of new accounting professionals entering the labor pool. Some mid-size firms and large firms are looking to shed small 1040 (orphan) clients unless they have additional 1065, 1120-S, or 1041 filings.
I agree with @Bjorn Ahlblad. If you don't know what all to consider, for example, depreciation, expenses, and special tax benefits for properties in target/improvement zones, you should lean towards getting a CPA
Based on your 2nd question, I'd say you're already at the point where you may need guidance from a professional. Landlords don't 1099 tenants. I'm wondering what else you're misunderstanding/reporting incorrectly on your tax return.
BiggerPockets now has a CPA referral page: