Does anybody have a tax accountant with a background in real estate, specifically multi-families that they would recommend in the Boston, MA area?
I filed a tax extension for 2013, so my returns are due on 10/15/14. I just bought my first multi-fam about a year ago in 10/2013 and I want to make sure that I am starting things out on the right foot, especially since I did a lot of repairs and purchased a lot of new appliances, etc. in 2013 and want to make sure I am setting up the depreciation schedules and building's property basis correctly, among other things.
Dan, I would suggest you focus more on the specialty of the accountant than on the physical location. You are jumping into this at their crunch time, and personally, my accountant will not take on any new clients until after October 15. He is also not local anyway, but does specialize in real estate investors.
There is no real reason anymore for your accountant to be local unless you are bringing him receipts by the shoebox full. Most documents are scanned and uploaded, and consultations, while nice in person, are just as effective by phone unless you are trying to look him in the eye and read body language.
So start now to look for that accountant, but I recommend not limiting yourself in geography if you can help it. You are at the 11th hour for getting tax and bookkeeping advice for 2013.
Thank you for your advice @Ann Bellamy
I totally agree with your points that the specialty is the key, which is why I was reaching out to BP members.
I am actually a CPA myself, but my focus is on bookkeeping side of things not taxes, so that's why I wanted to bounce ideas off of somebody. I have already read the book "Every Landlord's Tax Deduction Guide (Every Landlord's Tax Deduction Guide)" by Stephen Fishman once which was very helpful and I am going through it again now http://www.amazon.com/gp/product/B00GP3V5AU/ref=ki...
I also have already scanned all of my receipts and documentation and have them uploaded into Evernote (which I can give the tax accountant access to the specific folders), and have also pulled together a comprehensive spreadsheet to show all of my expenditures incurred for 2013 and have broken them down into their expense type categories that I think are applicable, so my return will be very straightforward for an experienced RE tax accountant and I agree with you that there's no need for the tax accountant to be local.
I have quickly talked to a few CPA's in the Boston area but after speaking with them they clearly didn't specialize in Real Estate.
I'm also in complete agreement with you on the 11th hour crunch time aspect. I'm in the middle of a bunch of renovations on my property now, just started a new job in the past few months and am currently also in the middle of a refinance on my loan, so that is the reason why I filed the extension and why I am here at the 11th hour trying to wrap things up.
Hey Dan shoot me an email at [email protected] I've got an accountant I can recommend to you and need some book keeping advice!
Glad to hear things are going well
@Ann Bellamy @Dan Borecki Dan - as I am sure you are aware the practice of public accounting is regulated by state licensing departments. Maybe good advice from Ann not to limit yourself to the Boston area, but outside of the State might not make sense unless you want to pay someone hourly and file yourself. Are you current or ex Big4? Why not find a current or former colleague? Too personal maybe to ask colleagues, but for me--when my tax scenario reaches a certain complexity, or my net worth exceeds a certain amount --I am surely going to find the best of the best. And in most major cities those accountants are former or current Big 4 -- you are going to pay 300-500/hour for a staff and probably 1k+/hour for a partner, but worth it for a high net worth individual.
Dan - I'm a newcomer to BP but saw your post and thought maybe I could help. My day job is working for a NH consulting firm specializing in cost segregation and asset management for commercial and residential property owners. We maximize deductions in accordance with the latest IRS regs, as well as create a baseline of assets for future dispositions/expenses. We don't do returns but work with many MA/NH CPA firms and could possibly help you. Give me a call at your convenience to discuss further.
We can surely help you with segmenting your expenses. I am strongly going to recommend you use an Accountant for depreciation calculation unless you are going to do them yourself. When they do they tax returns, they have to enter all the details for depreciation, so why do double work, second guess yourself and then beat your head over Evernote (just kidding).
We do not offer tax service, but would help you get ready for taxes. We gave up our tax practice two years ago.
All the best!
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!