CPA For First Time Short Term Rental Property

Houston, Texas
Short-Term & Vacation Rental Discussions
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CPA For First Time Short Term Rental Property

Ross Derouen
Member since 2021 · 9 posts · 15 votes

We are about to start building our first short term rental property. I am looking for a CPA to give guidance on the most effective way to go about the process and work with going forward. Our plan is to start with this property then potentially build another. Any guidance or suggestions would be greatly appreciated.

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @Ross Derouen:

We are about to start building our first short term rental property. I am looking for a CPA to give guidance on the most effective way to go about the process and work with going forward. Our plan is to start with this property then potentially build another. Any guidance or suggestions would be greatly appreciated.

Hey @Ross Derouen, welcome to the BP Forum! Especially since you're in TX, I'd recommend @Joshua Thompson. He's in Dallas and is a very CRE-focused CPA.

[email protected]
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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Ross Derouen:

    We are about to start building our first short term rental property. I am looking for a CPA to give guidance on the most effective way to go about the process and work with going forward. Our plan is to start with this property then potentially build another. Any guidance or suggestions would be greatly appreciated.

    Hey @Ross Derouen, welcome to the BP Forum! Especially since you're in TX, I'd recommend @Joshua Thompson. He's in Dallas and is a very CRE-focused CPA.

    [email protected]
    2Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    Ross - there’s lots of great CPAs on here that can help. You’ll want to make sure your cpa is well versed in short term rentals. 

    Biggest things you’ll want your cpa to guide you through;

    Material participation- there’s three tests; 500 hours; 100 hours and more than anyone else’s time, and substantially all the activity. You’ll want your cpa to help determine which hours count and which hours don’t count. 

    Average stay - you’ll want to see how long the average stay is. It needs to be less than 7 days. 

    Personal use - if you or your family used the property for personal purposes, you will need this to factored in. 

    [email protected]
    Brick House CPAs53 Reviews
    WebsiteView Page
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  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    1y

    @Ross Derouen

    Bigger Pockets is a great place to find an accountant specializing in real estate taxation.

    A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

    I recommend finding an accountant specializing in real estate taxation, business taxation, financial planning and tax planning.

    Consider working with your accountant remotely to expand your options.

    I would also recommend looking for an accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

    Good luck.

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
    WebsiteView Page
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