Do you use a CPA that specializes in real-estate?

mobile home university
1

This is my first year of owning a small park ( only 6 POH) and I am not sure if a regular CPA would be sufficient in maximizing my tax deductions or if I should look for a real-estate CPA. Myself , I plan to buy more real-estate in the future most likely multi families not necessarily mobile home parks.

I would really like to hear from you guys .Do you use a CPA that specializes in real-estate?

3

Yes, definitely use a real estate CPA. There are so many things that a non-RE CPA can miss.

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4

I have a highly qualified CPA who specializes in small business owners like me. You want to find a CPA who is very knowledgeable but is with a firm that is not so large that you don’t get the attention you deserve.

Expect to pay $1,500 to $2,500 for a good CPA (CA prices).

Here are a few suggestions for your taxes.

  1. Do or get a cost segregation study. I do them myself, but if you are not comfortable doing it, then hire an expert.
  2. Get a Broker’s Opinion of Value for the Homes and the land.
  3. Use your Insured Values for all Stick Built buildings (i.e., clubhouse, bathrooms, etc)
  4. Are you a qualified real estate professional (REP)? If yes, you will see significant benefits; if no, you will still get some benefits, but not as good.

NON-REP: Small Landlords have an Active Participation Allowance of up to $25,000. Once you make over $100k, it starts to phase out and is entirely gone at $150K. If you are married and your spouse does not work a W-2 job, you can have her qualify as the REP, and the tax benefits will flow to you via the Joint Tax Return. To do this, you must use an LLC and allocate the “Profit” 100% to the REP.

IRC §469(c)(7)(B) here is the code.