Should I hire a CPA?

Question

I make around $100k from full time job.

I own two Short term Rental units

I own two long term rental units.

I plan to continue to buy rental or commercial property.

Should I hire a CPA, a bookkeeper, or just do that myself and visit the tax man once a year? I’m not a rich man but I’m trying not to be penny wise and dollar foolish.

Jim K. · Answer

The answer is yes, yes, yes, a thousand times yes to a CPA. You want a full-service outfit that can grow with you. You do not want the cheapest tax returns in town. You do not want someone whom you can only talk to once a year.

My wife and I are most probably in the running for the most tightfisted penny-pinchers you have ever met and we have a full-service CPA.

Bjorn Ahlblad · Answer

My CPA has been with me for over 30 years-his father was my accountant before that. We do our own bookkeeping but he helps us with investments, 1031x etc. We have been audited by the IRS twice-he takes care of those things completely-he is my Rottweiler when needed. We interact with our CPA throughout the year not just at tax time.

Basit Siddiqi · Answer

@Philip OlivierYour tax profile is a little bit more complicated and such I think you should hire a professional(I am a little biased).

Since you make $100,000 from your full-time job - you should be eligible to deduct the losses(if you have them) from your rental property so long as you don't have significant income from other sources including the short term rentals. Ideally - you would like to have a chat with your advisor when you acquire and sale a property.There are a couple CPA's here on Biggerpockets who you can interview with and see if you would be a good fit. They can also provide you with an estimate of what the total cost would be.

Aaron Poling · Answer

I would suggest hiring a CPA for tax planning. It is much more advisable to pre plan your business as you expand to make sure things are done the right way while maximizing tax benefits. The cost isn't that high when you have a small portfolio and will go up as your grow.

Good Luck! Aaron

Should I hire a CPA?

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