Quick Tip about Good Accountants

I ran across your post today and it is timely because I just interviewed 2 accountants today.
I can't begin to tell you how confused and a little depressed I was afterward!

While they both said the same thing about some things, they had differing opinions about keeping the "passive" real estate (which I understand to be rentals and properties that you hold for investment) and the "flip" properties separate. One says they can remain in the same LLC and just filed separately depending on the profits, capital gains, etc. The other said they should be separate because the capital gains or profits of the "flip" properties will affect the passive properties negatively, tax wise.

They were both a little discouraging as far as doing any real estate that you don't hold at least 12 mo. in order not to appear to be a "real estate professional" and the tax implications of that.

How can someone as new and less knowledgeable as myself feel confident about finding the right accountant when I get conflicting philosophies? I know the rules and tax laws are the same for everyone, but how can they differ so when consulting with you about what to do?

Thanks for any insight.

JAN

I agree with Jan, your post is very timely. I read an article this past winter on the net and it zeroed in on "flippers" as they called it. Because of the popular practice of flipping props and not paying the correct taxes that the IRS was getting very serious about looking at what common everday REI's are doing. The part in the article said that you would almost have to live in every prperty you own for at least a year to avoid major taxes on gains. How odd, first people can't pay their mortgages and now they are being watched as to how much tax they are paying to boot. God, I love this country....Jan

Well, I really do love this country, especially when I consider some of the alternatives.

I had an accountant many years ago ask me, "would I rather pay 30-50% tax on $100,000 and use the other $50-$70,000 to make more money, or would I like to avoid making any at all in fear of having to pay taxes on it?"
I've just come to the conclusion that I would rather make as much as I can, pay as little taxes as I can and stop worrying about it. Whatever gets me ahead is better than where I am right now.

Let's get 'er done!!

Jan

Don't get me wrong, I do love this country. That is why I spent 6+ years in the US Army serving my country and you fighting the most unpopular war in history VIETNAM. I did 2 plus tours of duty there and then 1 year in El Salvador. So I do love this country, probably more than many people do. You took my statement all wrong. I was trying to say that people who always pay the right taxes are the people who bear the brunt for the people that don't. You can just call me "sarge" from now on

I have been thinking about possibly talking with an accountant too, however does the cost of having an accountant out weigh the HELP one gets from having one?

Every accountant I've ever had has saved me alot more money than I spent on them. I don't want to try to keep up with all the new, old, and changing tax laws. I'll pay someone.

Janmalek, I mean "Sarge", I wasn't itimating that you didn't love this country. Acknowledging that there are definitely some things wrong with the system, I was just re-affirming that overall we have a very good deal here. I think we are really on the same page.

Sounds like you are definitely a seasoned and proud veteran. Thanks for serving our country. I am the proud mother of an Army National Guard Captain who took a unit to Iraq (and brought them all back). Whooo-aaahhh!

I appreciate your input and look forward to more of your posts.

Blessings,
Jan

Sully, I too think that consulting with an accountant is beneficial. I spent too much time in the past trying to do it all myself and became very frustrated and "hoped" I got it all right.

Best to you,
Jan

When enrolling in the DG Real Estate Success Academy, they recommend using The Tax Club out of NY.

I'm sure a quick google search would point you in the right direction.

No offense taken, now lets get out there and help some people,and make a ltttle money to boot. I agree with alchristmann, I would sooner pay an accoutant to keep up on the tax laws, and let me look for propertys. God Bless....Sarge

A good accountant is worth their weight in gold! They can also help you with setting up your LLC.

God bless,

I was contacted by The Tax Club today to enroll in their program, however, after doing some research on the company online, i have read a few nightmare stories that are making me question their validity and honesty as a business. Does anyone have any experience using this company for business tax purposes?

Mati

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Live life today, because you never know what tomorrow can bring!

I have used the tax club to set up business for myself. I was pleased with the service that they gave me.

I am a coach and I do refer the Tax Club but the my oppinion is based on how they have helped me as well as many other happy customers.