All Forum Posts by: Steven Hamilton II
Steven Hamilton II has started 25 posts and replied 5110 times.
Post: How do you know if you are paying too much for a CPA?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Juliette Lerner:
@Bill B. Ahh okay that's good to know. I feel as though your CPA should answer your questions for free especially if that's only 1-2 times per year!
A question here or there is one thing. We don't charge for those; however, you have to realize our commodity is our time just like an attorney earns based upon their time available. My rate for tax planning and representation starts at $350 an hour. Simply put, I specialize in very specific situations. You're going to get the advice of someone who regularly researches and studies. If you're paying 1200 for a tax return that has 12 rentals, it is not reasonable to expect additional time for questions outside of the preparation engagement.
I personally love amending and representing tax returns that were self prepared or prepared by someone who doesn't actually study the law.
Post: How do you know if you are paying too much for a CPA?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Bill B.:
12 rentals in Nevada and 1 in MN (all SFH) and I thought I was overpaying my CPA at $1500 total. No state tax in Nevada but includes MN tax form (no tax owed due to depreciation.) Been with him for 10-15 years
I do the bookkeeping and fill out one sheet per property he supplies at tax time that lists each kind and amount of expenses as well as income
That is extremely undercharged. Based upon national avenuerage assuming nothing else you'd be looking at 2,200 for someone reputable, insured. This link is a bit old but should give you an idea:
https://connect.nsacct.org/blogs/nsa-blogger/2017/01/27/nsa-survey-reveals-fee-and-expense-data-for-tax-accounting-firms-in-2016-and-2017-projections
Post: How do you know if you are paying too much for a CPA?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Katie L.:
most CPAs bill on flat fee so you can call around and get other quotes during their off season if you want. Find the right CPA who you trust and jive well with.
Your return sounds fairly complicated. You didn’t say what you were paying and I don’t know the details but a case could probably be made for anything between $1,000-3,000, maybe more if there are a lot of states involved. And If you have business returns like LLCs then even more. It also could be more if the CPA is doing some almost bookkeeping work like putting together your schedule E analyzing your rental expense and categorizing them versus you already having them summarized; deciphering what new improvements to capitalize versus expense and whatnot all takes time.
Let me know if you want the names of some CPAs in San Diego. You may find that a CPA in another state will work for cheaper because cost of living is cheaper, but be sure they are familiar with the complex CA laws if you are going out of state.
*this post does not create an attorney client or cpa client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.
No, most don't bill on a flat fee. Possibly based upon the number of rentals, states etc; however, definitely not flat fee. Do a simple search for Average tax preparation fees. Advice costs most afterwords. Most of us here work with clients worldwide.
Post: Fort Myers REIA Networking Events?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Alvin Taveras:
Hello Josh,
Yes please visit https://swflreia.com/ for more information. Next meeting is next Wednesday at 11am. I will be there and would love to hear what kind of investment you are looking for. Let me know if you can make it.
Best,
Are you ever looking for speakers? I'd love to time one of my IRS audits down there with a REIA meeting
Post: Which is better for an LLC a S Corp or C Corp?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Cynthia Harrison:
Could I call you? When would be a good time to call?
You are always welcome to reach out. I disagree with the strategies above. There are far more lucrative options to protect your disability.
Post: Seeking killer LA based CPA
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @KJ L.:
We have a great RE-focused CPA thats in Orange, CA. He's about $200/hr but I think he's totally worth the money. If you want his contact information then PM me.
That is cheap especially for Orange county.
Post: Which is better for an LLC a S Corp or C Corp?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Cynthia Harrison:
@Steven Hamilton II. Thank you Steven! After the Kansas fee for filing LLC, getting domain name & setting up website with SEO's, business cards etc. I'm really hoping there's not many more expenses to incur right away! Hahaha
You may want to hold off on doing that. You need to speak with someone ASAP as there may be ways to avoid losing your SSDI.
Post: Accounting for Multiple LLCs
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Jayse Brock:
Thanks for the feedback @Steven Hamilton II and @Daniel Hyman. Seems like I just need an accounting system that tracks classes, and Wave does not do that currently. It's a shame because it works well in other areas!
I'd highly recommend Xero. I'm a huge fan.
Post: Seeking killer LA based CPA
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
You'll find most of us work with clients worldwide. More than 50% of my clients are outside of my area. I honestly don't know of anyone who specializes in both out that direction. Cost savings you probably won't find; however, you would avoid a lot of LA traffic.
I have a few clients out there in sound and directing and I know its a ton of fun.
BTW, Great video on your page.
Post: Letter of good standing and 1031 Exchange
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Anthony Petrarca:
@Anthony Thompson, that is a good idea, thank you. Have you done any 1031's lately?
Yes I already have a qualified intermediary in place and understand the rules of the exchange very well, until he hit me with this. We close at the end of October on the property I'm selling.
Just got off the phone with my accountant, he is digging his heels in on this and saying everyone fights him on this and he has become an expert on this, because he went through this in December. He said it's a state rule and not federal. I even told him there is no spot to identify the property to be bought on the form and he maintains the same attitude.
Technically he is correct.
What state are you a resident of?
If it is not RI then yes, he does in order to prevent there being a withholding tax which could be considered boot.
NONRESIDENT CORPORATE INFORMATION
If the seller is a nonresident corporation, the buyer will be deemed to be in compliance with the remittance
requirements if the seller provides the buyer with a Letter of Good Standing issued by the Tax Administrator for
the purposes of the sale.
If a limited liability company is deemed to be a nonresident the
buyer must withhold at seven percent (7%) unless the nonresident
limited liability company produces a letter of good standing issued
by the Division of Taxation for purposes of the sale. See § 1.7 (B)
of this Part.
http://www.tax.ri.gov/regulations/other/nrw91-01.php
http://www.tax.ri.gov/forms/1997/pers/7131.pdf
https://risos-apa-production-public.s3.amazonaws.com/DOR/REG_9219_20180806200412.pdf
http://www.tax.ri.gov/Tax%20Website/TAX/Letters%20of%20Good%20Standing/index.php