Are accountants are worth it? Change my mind.

[Philip Hy]

While I greatly respect accountants, I want someone to explain why they're worth the fee for 90% of buy and hold investors. This year my refund was $3,800. My total tax prep fee was approx $4,200 (not unusual if you ask around at these real estate accounting specialists). A great accountant would probably catch every mistake and squeeze every tax benefit, but what's the point if the fee exceeds any of the tax benefits. Moreover, many real estate accountants increase their fee based on number of properties. 

Alternatively, I could use TurboTax, maybe I miss some claims and I only get a $2,000 refund, but the software is only $500. I come out ahead $1,500 instead using an accountant where I'm negative $300. Even if I pay for TurboTax audit protection, I'd still be ahead.

What am I missing?

[Frank Wong]

Paying my accountant is the one thing I know will always yield me the highest ROI. Money well spent. I never ask about the fees or increase in it I see the value it brings to me.