CPA Considerations for Unmarried Couple with Co-Owned Investment Property
Hi all! I am a very new Chicago-based investor who just purchased my first rental property (two-unit) with my boyfriend; we plan to occupy one of the units and rent the other.
Since we are not married and do not file taxes jointly, I am just wondering if there are any special considerations or specialties I should look for in an accountant/tax advisor/preparer, on top of ensuring that they are REI-friendly. Each of us makes a typical W2 income in IL, and this would be our first investment outside of some stocks, employee-incentive shares, and retirement accounts.
I am not sure if this sort of situation would be too complex to be handled remotely, or if we should really be looking for someone with whom we could meet in person in our area. Any advice or referrals would be very welcome!
Lauren
- Real Estate Broker
- 1658 N. Milwaukee Ave Ste B PMP 18969 Chicago, IL 60647
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@Lauren Purcell if you need a good referral for a CPA, I know a really great guy who has a family firm I can introduce you to. Congrats on getting started. The tax advantages are incredible in the investing world!
HI @Lauren Purcell - I'd suggest you connect with @Steven Hamilton II He works with a ton of real estate investors and is just outside of Chicago in Greyslake.
Another good person to connect with would be @Aaron Zimmerman.
To be honest, you can almost do everything tax-related remotely these days, however, for me, I prefer meeting my accountant in person even if it's just for lunch or dinner occasionally so we can establish more than just a strick business relationship.
@Jonathan Klemm thanks for the referral!
@Lauren Purcell - totally understand wanting to get acquainted with someone in real estate. Happy to answer any questions for you.
Your tax return will be complicated for two reasons.
One - You have a property that is owned as tenants in common by unmarried people.
Therefore, you and your boyfriend will be required to report the activity on both your return based on ownership.
Two - It appears that it is also a house-hack situation, so therefore, you have a property that is both a personal residence and an investment property.
This situation could definitely be handled remotely, but I would still recommend going with an Illinois-based CPA since you'll have to file a state return as well. As far as the selection goes, I would recommend interviewing them, and asking what types of returns they typically handle. Presuming both your names are on the mortgage, I would advise you to seek out a CPA that specializes in both REI and partnerships.