Tips to Finding a CPA
Filing your taxes every year can be frustrating and difficult- but it doesn’t have to be.
Tax filing is simplified with the help and consultation of a tax expert. Seeking the help of a qualified accountant allows you to properly file your taxes without the headache.
But where do you start with finding an accountant that fits your needs?
There are many real estate specific tax laws and strategies that can help mitigate your tax burden that your ‘jack of all trades’ accountant is not familiar with. You want to make sure that the accountant that you are working with is able to address your needs across a broad spectrum of filings. If you are a real estate investor, working with a CPA that has a focus on real estate taxation can help reduce your taxes. Some tax laws that are specific to real estate investing include:
1031 Exchange
121 Exclusion (Applicable if you house-hack)
Depreciation/Bonus Depreciation/Section 179 Expense
Section 469 – Passive Activity Rules
Real Estate Professional Status
Cost Segregation Study
Section 199(a) – Qualified Business Income Deduction
Below are also some tips to help verify that your CPA is licensed and has adequate experience.
CPA licenses are issued by states and each state board has a way to verify whether an individual is a CPA or not.
As an example, below are websites to verify CPA licensure for the states of NY, NJ, CT, PA and MA.
Experience is crucial when selecting a professional. Under normal circumstances, a tax professional with 20 years of experience will be better able to advise you than a professional with 2 years of experience.
Quality of experience is also important – A tip here is to look for a professional who has past experience working at a large public accounting firm as they will likely be exposed to varying tax situations.
This last tip is icing on the cake – It would be great to work with a professional who actually invests in real estate themselves. Why is this important? They understand the tax benefits of real estate investing and can help aid in tax planning and offer tax advice.
If you’re looking for an accountant that has years of experience within tax and is a real estate expert who invests personally, be sure to reach out to schedule a consultation with Basit Siddiqi, CPA today on Calendly. Consultations for new clients are free! We have clients from all over the country and would love to speak with you to determine if we’re the right fit for you.
Our firm focuses on maintaining close connections and the relationship that we have with our clients is a personal one. Reach out to basit@basisiddiqi.com if you have any questions.
