Hey @Bobby Spurlock ! Are you looking mainly for tax filing assistance, or are you setting up (or improving) your financial systems? These are different needs that might be addressed by two separate professionals.
Hey Mitch! I am actually looking for both. Mainly for tax filing but I also want someone to advise us on how to best run our business to maximize our tax benefits going forward. We currently have 2 companies, one that buys the properties, and another which acts as the property manager. We are also using the BRRR method and refinancing some of the properties under our personal names.
There are many options of finding a local CPA with experience in real estate tax strategies.
1. Use the search function if a BP member previously was in search of a CPA. I like this approach because you can ask the posters who they ended up using and if they like working with them.
I went ahead and pulled up 4 posts of Tulsa BP members asking for a CPA.
https://www.biggerpockets.com/forums/51/topics/226... https://www.biggerpockets.com/forums/51/topics/297... https://www.biggerpockets.com/forums/22/topics/317...
2. Attend local real estate investment networking events. You can use the Events section of BP or go on meetup.com for groups/events.
3. Find the big players in Tulsa on BP.
Add the keywords "Tulsa" and/or "Oklahoma" to the BP keyword alerts. You will notice that there are frequent posters who respond to topics with these keywords. Feel free to add these individuals to your network and ask who they use as a CPA.
4. If you are still unable to find a local CPA - Feel free to broaden your search by looking for a CPA that works with clients remotely. There are many CPA's on BP that do so.
In the meantime - feel free to ask any tax related questions. I would be glad to give my input.
Good luck on your search!
There are also consequences of having 2 companies where 1 acts as the rental business and the other acts as the property manager.
Rental income is normally considered passive income. However, if you are transferring some of the proceeds from the rental business into the property management business you are essentially converting some of the income from rental/passive to ordinary income.
There are Pros/Cons for doing this
Con - Your property management income will be considered ordinary income subject to self-employment tax.
Pro - You may not be put a portion of the property management net income into a retirement account.
Con - You may now need to file additional forms with the IRS increasing your accounting fees.
You may also need to file a payroll tax return.
Pro - If your property management company runs as a loss and you were not able to take the losses on your rental business - you may not able to take some losses there were previously unavailable to you.
I have a CPA that I can recommend. PM for details. These guys are very personable and have experience in real estate. I have only been with them for one year but they have been very accommodating.
@Steven Osterhout I do have a guy I've used in Skiatook. He is not a CPA, he is a tax accountant and does book-keeping. But he does great with small businesses and knows how to take full advantage of all the tax benefits of rental real estate, as well as balancing the active business side as well.
@Colte Utley- please message me your accountants name with real est experience
Thanks everyone for the responses. Sorry for the late response, I haven't been on here for a while. Basit, thank you for the advise! I was not aware of some of the cons that you brought up. We will definitely consider them moving forward. We are still looking for a CPA. Any recommendations would be greatly appreciated. We'd prefer someone local to Tulsa. Colte, I just sent you a PM.
I’ve talked with Hood & Associates. They do CPA tax preparation as well as financial planning. They have office in Tulsa, Claremore, and Bartlesville. I just had an orientation meeting with them. Not sure if I’m going to use them or not. So I am interested in any references other may have as well.
Davison Accounting in Tulsa:
This is a small family business ran by father (Steve) and son (Mike) . They have a portfolio of rentals so their advice is always good. Steve has the best stories and Mike is always up for a laugh. I just met with Mike a few days ago and he gave me some good advice and cleared up a few things that I was uncertain about. This is my 1st year filing taxes for my LLC so I definitely needed guidance. Tell them I sent you, they are great guys.
Hope this helps!
Thanks I was looking for a good RE CPA. I called Davison and will schedule a sit down with them.
@Guy Yoes Did you end up using Davison?
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