Current Events > Any CPAs here on CE?

(+) Yeah! (+)

I know there's a few, not sure if they are online right now. I had a question about venturing into real estate investing <_< I plan on calling a few local CPAs also to get input as I start my research.

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What is a CPA?

Is it computer programming analyst?

or
Certified Public accountant?

or something else?

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I think you mean CFA, CPA is a public accountant

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Yeah but I don't have experience in real estate investing. There's a ton of information out there that most of us CPAs never touch.

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Romulox28 posted...

I think you mean CFA, CPA is a public accountant

This too. Your local CPAs you would mostly call to do your taxes, or more if you have a business. We don't give investment advice.

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Ah...my general question is if I buy 2-4 homes or more in my life time is it better to just buy under my name or form a business since I'll be renting these places out. I'd rather the business grow based on profit compared to giving it to myself so I'm not taxed at a higher bracket if it happens. Eventually I'd transfer some funds into my account to use while maintaining a full time job still.

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Austin_Era_II posted...

Ah...my general question is if I buy 2-4 homes or more in my life time is it better to just buy under my name or form a business since I'll be renting these places out. I'd rather the business grow based on profit compared to giving it to myself so I'm not taxed at a higher bracket if it happens. Eventually I'd transfer some funds into my account to use while maintaining a full time job still.

Ah, yeah if you're going to run a business it's usually recommended to form an LLC for liability protection. It would help protect your other assets in case your business goes to shit.

But there's a misconception on how the taxes will be treated. Unless you're forming a C corporation (unlikely), you'll pick up any income from your business on your personal tax return. Even if you hold the money in the business, you are the one who gets taxed, not the business. You will not get taxed when you take money out of the business.

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EndOfDiscOne posted...

This too. Your local CPAs you would mostly call to do your taxes, or more if you have a business. We don't give investment advice.

do you even need a CPA for taxes, isnt that just for auditing financial statements

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Romulox28 posted...

EndOfDiscOne posted...

This too. Your local CPAs you would mostly call to do your taxes, or more if you have a business. We don't give investment advice.

do you even need a CPA for taxes, isnt that just for auditing financial statements

cpas can offer both tax advice and auditing services
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Romulox28 posted...

do you even need a CPA for taxes, isnt that just for auditing financial statements

You don't need a CPA, but taxes are the largest source of revenue for my office and most others.

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I'll look into forming a very small corporation down the road if I go that path. That's good advice to hear. I'm slowly learning as I research such as paying taxes on capital gains. I'll be talking with the bank this week. Mortgage rates are quite low and so are bank loans. My current house has equity and the only loan I have is a mortgage so I'll see what the bank offers me for a 2nd mortgage as a rental property.

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Austin_Era_II posted...

I'll look into forming a very small corporation down the road if I go that path. That's good advice to hear. I'm slowly learning as I research such as paying taxes on capital gains. I'll be talking with the bank this week. Mortgage rates are quite low and so are bank loans. My current house has equity and the only loan I have is a mortgage so I'll see what the bank offers me for a 2nd mortgage as a rental property.

As a heads up, it's usually not recommended to put real estate into a corporation (either S or C corporation). It reasons get a little complication, but it's usually advised to put real estate into an LLC, which for tax purposes would go directly on your personal 1040 as if you owned it. Or taxed as a partnership if there are other investors.

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I don't think we have LLC here in Canada. It's called something else...which I gotta look into.

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Austin_Era_II posted...

Canada

Ah, well then you can disregard everything I said. No idea what the tax laws are in Canada.

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