Comments on: Rental Properties: Should I use an accountant or tax preparation software? http://landlordbusinessinsider.com/2009/03/rental-properties-should-i-use-an-accountant-or-tax-preparation-software.html "The way SMART Landlords DO IT!"™ Tue, 02 Mar 2010 21:15:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Steven http://landlordbusinessinsider.com/2009/03/rental-properties-should-i-use-an-accountant-or-tax-preparation-software.html/comment-page-1#comment-20 Steven Sun, 07 Jun 2009 03:56:38 +0000 http://howtobuyrentalproperty.blogspot.com/?p=48#comment-20 Finding a good accountant who understands the ins and outs of landlording and rental property ownership is not always that easy. I'd look for someone who has a number of years of experience, is a CPA, an has at least several other larger clients who own rental properties.<br /> How do you find this person? Ask for referrals from other local rental property owners, look at the accountants who are part of you local Landlord or Real Estate Investment Clubs/Associations and call them. Ask them if they understand the rental property/landlording business. Ask them if they own any rental properties themselves, or have they in the past owned any rentals? Search online or in the yellow pages for accountants that specifically mention their expertise in real estate. <br /> A great book to familiarize yourself with on the ins and outs of tax issues and opportunities for rental property owners is <br /><br />"Every Landlord's Tax Deduction Guide", which is available through my site at <br /><br />http://managerentalproperty.com/books.aspx<br /><br /> In the end, finding a good account is well worth the effort, in my opinion. However, also educating yourself is just as important. No accountant will know your business as well as you do. A great one will help guide you and keep your taxes relatively audit-proof. However, it's still a two way street and you also need to know enough to bring issues and potential opportunities to reduce your taxes to your accountant. Finding a good accountant who understands the ins and outs of landlording and rental property ownership is not always that easy. I'd look for someone who has a number of years of experience, is a CPA, an has at least several other larger clients who own rental properties.
How do you find this person? Ask for referrals from other local rental property owners, look at the accountants who are part of you local Landlord or Real Estate Investment Clubs/Associations and call them. Ask them if they understand the rental property/landlording business. Ask them if they own any rental properties themselves, or have they in the past owned any rentals? Search online or in the yellow pages for accountants that specifically mention their expertise in real estate.
A great book to familiarize yourself with on the ins and outs of tax issues and opportunities for rental property owners is

"Every Landlord's Tax Deduction Guide", which is available through my site at

http://managerentalproperty.com/books.aspx

In the end, finding a good account is well worth the effort, in my opinion. However, also educating yourself is just as important. No accountant will know your business as well as you do. A great one will help guide you and keep your taxes relatively audit-proof. However, it's still a two way street and you also need to know enough to bring issues and potential opportunities to reduce your taxes to your accountant.

]]> By: Anonymous http://landlordbusinessinsider.com/2009/03/rental-properties-should-i-use-an-accountant-or-tax-preparation-software.html/comment-page-1#comment-19 Anonymous Sat, 06 Jun 2009 08:10:13 +0000 http://howtobuyrentalproperty.blogspot.com/?p=48#comment-19 But how do you find the right accountant?<br />I was referred by a friend, but after I had to send him back to the drawing board once for mistakes he had made and a second time because he misinterprets &/or contradicts the instructions from the IRS, (and seems to rely to heavily on some computer software to tell him how to do the taxes and does not really seem to understand everything himself), I have really lost confidence in him and don't know what to do. I don't know how to do all of the depreciation myself (just began landlording last year) and so that's why I hired someone, but he can't seem to get it right. Again, how do you find the right accountant? But how do you find the right accountant?
I was referred by a friend, but after I had to send him back to the drawing board once for mistakes he had made and a second time because he misinterprets &/or contradicts the instructions from the IRS, (and seems to rely to heavily on some computer software to tell him how to do the taxes and does not really seem to understand everything himself), I have really lost confidence in him and don't know what to do. I don't know how to do all of the depreciation myself (just began landlording last year) and so that's why I hired someone, but he can't seem to get it right. Again, how do you find the right accountant?

]]> By: Ian http://landlordbusinessinsider.com/2009/03/rental-properties-should-i-use-an-accountant-or-tax-preparation-software.html/comment-page-1#comment-18 Ian Mon, 23 Mar 2009 09:31:00 +0000 http://howtobuyrentalproperty.blogspot.com/?p=48#comment-18 I totally agree that hiring a professional accountant is worth the cost. Accounting is not an easy task and is constantly getting more and more complicated as the government make everything harder for us. <br/><br/>Since getting an accountant a few years ago I am a lot more chilled on the financial side of my business and am nowhere near as bogged down.<br/><br/>I do have to say though I don't think you need one until you have a few properties. I totally agree that hiring a professional accountant is worth the cost. Accounting is not an easy task and is constantly getting more and more complicated as the government make everything harder for us.

Since getting an accountant a few years ago I am a lot more chilled on the financial side of my business and am nowhere near as bogged down.

I do have to say though I don’t think you need one until you have a few properties.

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