Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes
As the post mentions, I'm looking to hire a reliable, trustworthy and more importantly RE experienced CPA here in San Diego preferably. I can possibly consider a long distance one in cities that we travel to often like New York city, Austin, Dallas and Miami to start writing those trips off. We have just acquired our first property here in SD which we are house hacking which other 4 tenant. The property is going under major renovation work. Hence I want someone to help us to devise a good tax plan and subsequently do our tax filling.
@Michael Ndjondo makadi I would find a top notch CPA / legal firm combined where they invest in real estate themselves. Think outside the cities you are asking about, and just go find the best you can afford out there. I've been working remote with my firm for 5 years!
Thanks for your input. I did read the first 2 books you mentioned and they were really an eye opener for me. Hence, I think I know what I’m looking for from a CPA.
House hacking makes your tax situation more complex. You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets 100% of the payment can be factored in somewhere on the return Partial payment can be factored somewhere on the return 0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.
You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion. You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion