As per a recent report, in 2024, over 70% of property investors in the U.S. claimed that they ended up saving on taxes by hiring an accountant. The real estate business is continuously expanding, with new landlords, flippers and Airbnb hosts entering the marketplace each day. But on the same note, a lot of investors are losing money due to poor deals and bad accounting.
Being a property investor, you understand your financials can get really complex. From mortgage interest deductions to depreciation and capital gains taxes there are lots of numbers to manage. That is the reason you Find an accountant for real estate.
But how to do that? By finding an accountant who understands the real estate sector and also helps you save money. Let us see how.
Do You Really Need An Accountant Who Specializes in Real Estate?
Real estate accounting services differs from other kinds of accounting. There are special tax benefits, financial reports and legal structures for owners of properties. In case you simply employ an accountant that does not specialize in real estate, you might miss huge savings opportunities or make poort investments.
What a real estate accountant brings to the table:
- Maximizes your tax deductions (mortgage interest, repair work, travel, etc.).
- Knows depreciation schedules and the way to utilize them.
- Suggests the very best legal entity (LLC, S-Corp, etc.) for your property business.
- Helps plan out your cash flow so you are never ever caught unawares.
- Makes sure you meet IRS rules on passive income and property sales.
In case you are feeling weighed down or confused about how you can handle your rental income, capital gains or 1031 exchanges, it might be the time to admit that you want an accountant.
What If You Do not Hire the Right Accountant?
Say you use a general accountant or try to do your taxes with basic accounting software. At first you could be saving cash. But here is what happens next:
- You miss deductions you're entitled to.
- You overpay taxes.
- You underreport income or expenses and face IRS audits or fines.
- You structure your business wrong which hurts you later.
- You work harder and keep less, which is not ideal.
Signs It Is Time to Find an Accountant
You need to begin looking into an accountant for your real estate business if:
- You purchased or sold a property last year.
- You are managing multiple properties.
- You want a 1031 exchange or seller financing.
- You have begun flipping homes or investing full time.
- Terms like depreciation, passive income rules, or basis adjustment make you confused.
- You spend over five hours every tax season "figuring it out."
If any of that sounds like you, don’t wait. Begin looking for a real estate accountant now.
Finding a Good Real Estate Accountant
Let us now break it down into a step by step method to help you find an accountant who understands real estate:
1. Ask the Right Questions
If you meet with prospective accountants, do not be afraid. Ask these questions upfront:
- Have you worked for other property investors?
- What proportion of your clients are in real estate?
- Are you familiar with 1031 exchanges, depreciation and expense segregation?
- Could you help me select or change my business entity?
- Do you own investment properties yourself?
The answers will tell you a lot. If they stumble or offer ambiguous responses, they might not be the right fit.
2. Look for EA or CPA Credentials
While not always required, an EA or CPA generally means more experience and training. Still, what is most important is their experience of real estate.
Bonus tip: If they have worked with investors that own rental properties, or flips, vacation homes, that is a good thing.
3. Check Their Availability
Great accountants are usually busy but they should also be responsive. If they take days to return your call or email, that is a warning sign.
Ask them during your first contact:
- What is your turnaround time for getting back email messages or calls?
- Which way would you prefer to communicate - email, telephone or online portal?
- Who else will be handling my file in your office?
You want somebody who will not hang you up when you need to close the deal or file taxes on a deadline.
What You Can Expect To Pay a Real Estate Accountant?
Most real estate accountants charge either:
- Hourly prices (USD 100-USD 400 an hour).
- Flat monthly fees (USD 200-USD 600 +, depending on complexity).
- Annual tax return fees (USD 500-USD 2,000 per property).
It sounds like a lot, but a great accountant will save you far more than they cost. Think of it as an investment rather than an expenditure.
Watch Out for These Red Flags
All accountants aren't equally good. These are signs you should walk away:
- They don't ask questions about your property business.
- They're claiming "huge" refunds without your numbers.
- They can not explain matters in simple English.
- They miss deadlines or they neglect to follow through.
- They say "Real estate is a business much like any other"
You deserve somebody who knows real estate, so don't settle for anything less.
Also Read | Top Questions to Ask When You Hire an Accountant for Your U.S. Business
Final Thoughts
The power of real estate lies in creating wealth. This requires you to have the right people in your team, beginning with your accountant.
So, if you are buying your first rental or managing an expanding portfolio, stop taking chances. Start today by finding an accountant who knows real estate inside and out.
And if you are certain that you need an accountant then you are in luck. The Fino partners offer some of the best real estate accountants for US businesses.
Don't wait till tax season pressure hits; hire an accountant from us today and let The Fino Partners assist you all year round.
