Landlords, You Need A Real Estate Tax Accountant – Here’s Why

Real estate accounting can be complex and, in most situations, downright grueling. Are you searching for a real estate CPA that can help you simplify your life? Do you want to learn how to find the right real estate CPA? In today’s article, we’ll answer all your questions and help you find the right CPA specializing in real estate.

The role of a real estate accountant usually entails submitting financial strategies, managing budgets and books of accounts, and preparing tax returns that make use of all available deductions. Additional tasks often include analyzing investment opportunities and evaluating assets for the investor.

As a real estate investor, you would already be using softwares that makes your life easy. But there are some things a computer can’t do well, and that’s where you need a real estate accountant that helps you keep your business and investments on track and under control.

Investors tend to contact their accountants only during tax time and then essentially disappear all year round. Unfortunately, this strategy is old and doesn’t work anymore. If you have a real estate accountant by your side throughout the year, you can develop new strategies and utilize legal loopholes to save money on your income. Did you know? You can deduct passive losses from your income if you work a fixed number of hours every month maintaining your properties. These are the kind of things only a professional real estate CPA would know. So speak to one today!

Every year, significant changes are made to the U.S. tax code. Federal and local laws also change, and you might not always be familiar with these changes. That’s where a real estate accountant comes in, as they are always up to date on any and all changes to bookkeeping codes and laws. If you have a close relationship with your accountant, you will be able to anticipate unexpected changes and be prepared to mitigate any financial losses or even take advantage of these changes.

Real estate CPAs specialize in structuring your payments to minimize your risks while keeping the deal on track. For example, if you run a rental business, they can guide you on the best way to route your income, whether it be through an LLC, a C or S Corp, or through your individual account. An experienced real estate CPA will always have your best interest in mind and help you optimize your payment schedules, secure financing, and even manage your books to safeguard your income against any sort of risk.

Small things can often be missed out even when we use softwares and tools to manage our business and books of accounts. But, when you have a professional CPA specializing in real estate managing your accounts, you ensure that your books are handled accurately and efficiently. This means that you claim all deductions that apply to you and improve your free cash flow. They also advise you on how you can leverage your current investments to get financing for your new properties without spreading yourself too thin and risking your financial freedom.

Real estate CPAs usually are well aware of potential deals on the market and have connections with high-ticket investors who can help you finance your assets in case you ever need to. As they often have a hand on the market’s pulse, they know all the best investments and inform you if anything suiting your profile comes up in the market. Now we know why you need a real estate CPA or a real estate accountant. So let’s take a quick look at how you can find a reliable real estate CPA.

A quick google search for real estate CPA in Maryland will bring up tons of results for you to choose from. It’s essential to consider a few key aspects when selecting a real estate accountant for your business. Some of these are –

• Experience Working With Real Estate Investors And Agents
• Proven Track Record As Displayed By Client Testimonials
• An Interest In The Field Of Real Estate
• Hands-On Experience With Software You Use For Your Accounting And Bookkeeping
• Availability Of A Bouquet Of Related Services

Sigma is Maryland’s leading real estate accountant offering bookkeeping services, accounting services, and tax preparation services to real estate business owners and investors. Our services take the burden of administration away from you and help you –

• Track Your Expenses
• Classify Income Appropriately
• Review Deductions For Rental Properties
• Claim Ordinary And Necessary Expenses For Investment Properties
• Recover Cost Of Improvements For Rental Properties Through Depreciation And Tax Deductions.
• Claim Qualifying Tax Deductions And Tax Benefits For Expenses Paid By The Tenant

We support you throughout the real estate investment life cycle and help you at every step of the way. Please speak to us to learn how we can save your time and help you grow your business.