STR - REAL ESTATE CPA's

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STR - REAL ESTATE CPA's

Ali ParvizadPro Member
Member since 2021 · 10 posts · 1 vote

Whatsup everyone! 

I am looking for some references on a Real Estate CPA in the Delaware/MD/VA/DC Area to help me get on track for optimizing the benefits of running a STR. I am new to STR's having just launched in Rehoboth Beach this season. I have a Long Term Rental and my primary residence, along with two W2's and my wife's 1099. I have been doing taxes myself up until now, but things are getting a little too complicated for my skill level and I know I am leaving money on the table. Any guidance/tips/references for a Tax adviser/CPA specializing in Real Estate is much appreciated!

Thanks all, - Ali 

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Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
3y

learnlikeacpa.com is who I use. I have 12 STR.

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  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    learnlikeacpa.com is who I use. I have 12 STR.

    4Reply
  • Gregory Jackson
    Member since 2021 · 6 posts · 2 votes
    3y
    Quote from @Ali Parvizad:

    Whatsup everyone! 

    I am looking for some references on a Real Estate CPA in the Delaware/MD/VA/DC Area to help me get on track for optimizing the benefits of running a STR. I am new to STR's having just launched in Rehoboth Beach this season. I have a Long Term Rental and my primary residence, along with two W2's and my wife's 1099. I have been doing taxes myself up until now, but things are getting a little too complicated for my skill level and I know I am leaving money on the table. Any guidance/tips/references for a Tax adviser/CPA specializing in Real Estate is much appreciated!

    Thanks all, - Ali 


     Hi Ali,

    Looks like Leslie had a great suggestion, I am going to check out that podcast too.  Also a cost segregation study might be something that you could benefit from.  These studies allow taxpayers to reclass certain property from a 27 or 39 year property to 5-15 year property which will give you more depreciation in earlier years (helps with cash flow in the early years). I would search that topic on BP or reach out to Daniel La Roche.  

    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    We use Anderson Advisors and love working with them! They're nationwide so check them out!

    [email protected]330-557-3021
    1Reply
  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    3y

    I am an investor in real estate as well as provide specialty tax services. I have worked with a number of great CPAs over the years and would be more than happy to provide you with recommendations if you'd like? Feel free to reach out if so!

    561-253-6640
    1Reply
  • Ali ParvizadPro Member
    OP
    Member since 2021 · 10 posts · 1 vote
    3y

    Thanks for the advice everyone, I will reach out to connect and look into these options. 

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    3y

    There can be a lot of benefits of self-managing a STR towards your tax return.

    I normally work with clients advising them how much of a house they need to buy to get there income close to $0

    Best of luck with your search of a CPA.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
    View Page
    0Reply
  • Ali ParvizadPro Member
    OP
    Member since 2021 · 10 posts · 1 vote
    3y

    Update to this thread & Follow up Question:

    Thank you for connecting me with Kim Lochridge @Julio Gonzalez, we are working towards the Cost Seg study and she helped connect me with a local CPA.  Based off the initial assessment looks like I will be able to benefit and defer some gains this year.  

    While that is in motion, I got an opportunity to engage in a mid-term lease from an insurance company looking to get a 90 day lease for a displaced client.  My question is:  Is the requirement/qualifying condition of the less than 7 day average length of stay calculated by calendar year or is there more to the time measurement than just the taxable year?

    My scenario is that the 90 day lease would start mid October and run into January.  If the 7 day rule is used for 2023 taxes until the end of the calendar year my average length of stay will remain under 7 days.  But if it is calculated off something else, like the length of the lease or any other condition I may not be aware of it would disqualify me from using this tax strategy. 

    Thank you all for your input!

    -Ali

    0Reply
  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    2y

    @Ali Parvizad I'm so glad Kim was able to help! 

    561-253-6640
    0Reply
  • David Orr
    Accountant · Austin, TX · Member since 2016 · 72 posts · 72 votes
    2y

    Treasury Regs 1.469-1(e)(3)(iii)(C)(1) addresses that scenario, and it's not good news for your situation unfortunately.  If you have a stay that runs through the last day of the year, you have to count the entire length of that stay when calculating the average stay for the year.  

    I'm happy to answer any other tax questions for anyone looking for tax help, and I also do free initial consultations. 

    0Reply
  • Ali ParvizadPro Member
    OP
    Member since 2021 · 10 posts · 1 vote
    2y

    Hi David, thank you for this response, very helpful.  Can you also answer: Is the medium term tenant also included in the total reservation count number?  I.e. if I had 23 reservations strictly on Airbnb, and rented to the medium term insurance tenant, would that take my total reservations booked to 24? If yes, I would still qualify for the 7 nights or less when calculating number of nights booked/number of reservations made .

    0Reply
  • David Orr
    Accountant · Austin, TX · Member since 2016 · 72 posts · 72 votes
    2y

    Yes, you have to count them in the average if you have a medium or long term tenant.  When you include the medium term tenant, that doesn't push your average over 7 nights?

    0Reply
  • Ali ParvizadPro Member
    OP
    Member since 2021 · 10 posts · 1 vote
    2y

    David, the average nights remains under 7 if I am counting the medium term tenant in the average.  I think I am going to try going through with it.  I will post progress here for anyone interested/going through this for the first time as well.  

    0Reply
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