Need Tax Filing Advice

Member since 2021 · 27 posts · 6 votes

I recently closed on a house in vegas in Sept 2025 and I'm currently an out of state investor in California. Should I hire someone to do my taxes? I have W2 job and the real estate property (cash flow negative), so I want to do deduct things like (depreciation, mortgage interest + home insurance, hoa, sewer + garbage, property management fee, laundry machines). Is there anything else I should deduct from the real estate property?
I've been quoted $1.2k to do my taxes which seems like alot, so I'm deciding if i should do it myself. Any thoughts or recommendations?

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

7mo

Quote from @Lawrence Ng:

Have you done your own income tax returns in the past?

If so, with all the tax software our there, you should be able to handle one property on a Schedule E.

If you do hire a tax professional, find one that works with a lot of RE investors.
- Otherwise you're paying them a premium to learn their way through doing your return 🥵

FYI: this is similar to hiring a jack-of-all-trades attorney to do an eviction, and paying more, vs hiring an attorney that specializes in evictions.

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
7mo
Quote from @Lawrence Ng:

I recently closed on a house in vegas in Sept 2025 and I'm currently an out of state investor in California. Should I hire someone to do my taxes? I have W2 job and the real estate property (cash flow negative), so I want to do deduct things like (depreciation, mortgage interest + home insurance, hoa, sewer + garbage, property management fee, laundry machines). Is there anything else I should deduct from the real estate property?
I've been quoted $1.2k to do my taxes which seems like alot, so I'm deciding if i should do it myself. Any thoughts or recommendations?

Have you done your own income tax returns in the past?
If so, with all the tax software our there, you should be able to handle one property on a Schedule E.
If you do hire a tax professional, find one that works with a lot of RE investors.
- Otherwise you're paying them a premium to learn their way through doing your return 🥵
FYI: this is similar to hiring a jack-of-all-trades attorney to do an eviction, and paying more, vs hiring an attorney that specializes in evictions.
[email protected]248-209-6824
Logical Property Management4.9450 Reviews
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- Lawrence Ng
  OP
  Member since 2021 · 27 posts · 6 votes
  7mo
  @Drew Sygit I did my own w2 tax returns but never done real estate tax before since this is my first property and not trying to mess up the returns to capture all the tax benefits. It's my only rental property so I'm not sure if it's worth it to pay for it vs doing it myself.
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Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
7mo
You're missing travel expenses to the property, repairs/maintenance, and home office deduction if you manage it from there. $1200 seems steep for one rental - are you planning to scale or staying at just this property?
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- Lawrence Ng
  OP
  Member since 2021 · 27 posts · 6 votes
  7mo
  Quote from @Bo Smith:
  
  You're missing travel expenses to the property, repairs/maintenance, and home office deduction if you manage it from there. $1200 seems steep for one rental - are you planning to scale or staying at just this property?
  
  Planning to scale but low on cash for now. I don't manage it myself. Can I still deduct travel expenses for going to close on the property. No need for repairs/maintenance since it's new build.
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Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 710 votes
7mo
@Lawrence Ng
I have a few CPA references to call. They will give you a few minutes of their time and tell you if your situation is simple enough for Turbo Tax or if they can save you more than the 1.2k on multiple tax strategies. I'll send you a PM.
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- Lawrence Ng
  OP
  Member since 2021 · 27 posts · 6 votes
  7mo
  Quote from @Bradley Buxton:
  
  @Lawrence Ng
  I have a few CPA references to call. They will give you a few minutes of their time and tell you if your situation is simple enough for Turbo Tax or if they can save you more than the 1.2k on multiple tax strategies. I'll send you a PM.
  
  thanks Brad!
  1 Reply
Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 136 posts · 36 votes
7mo
Lawrence,

Congratulations on your Vegas property. Deciding between DIY and hiring a CPA depends on your personal preference and risk tolerance. If your goal is simply to file your taxes and you have the time to research and stay current on tax laws, doing it yourself can be a good option. The IRS offers several guidelines to help you understand the responsibilities of owning a rental property, and the IRS website is a great starting point.

On the other hand, hiring a CPA makes sense if you want added value beyond basic tax filing. CPAs can offer valuable tax advice for preparing your return, as well as provide year-round tax and financial planning. This can help you save a lot of time and money throughout the year.
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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
7mo
It depends what's included for $1,200. The question is if you want the peace of mind knowing it's done correctly. You're absolutely right that you can do it yourself.

Key mistakes I see people make:

1. not getting the basis of property correct.

2. missing expenses such as mortgage interest, property taxes, insurance, repairs vs capex, etc.
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
6mo
This question has a few parts when answering it. If the property is a long term rental, the deductions you listed are generally correct and you can also deduct things like property taxes, repairs and maintenance, advertising, professional fees, etc. The building itself is also depreciated over 27.5 years, and items like appliances or laundry machines may be depreciated separately depending on the cost. One thing to keep in mind is that since you have a W2 job, long term rental losses are usually considered passive and may not offset your W2 income unless you qualify as a real estate professional or fall within the passive loss allowance rules. If the property were operated as a short term rental and you materially participate, there will be more flexibility with how losses are treated. Many investors still choose to use a CPA, especially in the first year, because setting up depreciation correctly and allocating the purchase price between land and building is important and mistakes can be difficult to fix later. A $1.2k fee for a return with a W2 and an out of state rental property is fairly typical due to the depreciation and multi state considerations.
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