I currently do my taxes through TaxSlayer or TurboTax. I recently spoke to some friends who recommended that I get a CPA because they helped them save money on their taxes. Of course, I realize that every situation is different, so here is mine: One W2 One rental property that I also live in (house hacking in a duplex in Bay Area) Maxing out pre-tax 401k 10% after tax contribution to Roth 401k via mega backdoor ~570k in various investments, mostly target date fund through Fidelity and Vanguard. Mostly through 401k and traditional IRAs rolled over from previous employers' 401k ~75k in bank ~45k in CDs No crypto I haven't decided to go with the CPA yet, but based on our initial call, here are the services he's proposing for my situation: 1. Retirement planning - "stress test" (idk what this means) scenarios to determine earliest age I can retire and what income I'd receive 2. Tax planning - review recent tax returns to identify areas of opportunities for ongoing tax savings and minimizing tax drag 3. Investment efficiency - analyze all accounts and determine if funds are allocated optimally (should it be more aggressive / conservative) 4. Cash flow planning - ensure every dollar has a destination 5. RSU stock option analysis - decide how / when to best sell and where to allocate once sold 6. Passive income strategy - custom gameplay to build real estate portfolio to create passive income Some of it may be jargon, but how much of it is substantial vs just filler? At what point should I actually consider a CPA? One / two / more rental properties? TC: 310k YOE: 8
Da fuck? I just send my tax paperwork to my cpa and he does my taxes (well worth it). He does find loopholes and breaks but never mentioned any additional services in my life.
How much does he charge you? And what is your tax situation that unlocks these loopholes?
I pay $350 every year I’m married and own 2 properties. Actually part of the reason I pay him is so I don’t have to think about taxes at all but he will put in deductions I would have never thought of such as life insurance, certain ones on rentals, investment losses, etc. Get way more than when I was doing things in turbo tax. I’d give it a shot you don’t have to pay until the taxes are filed so if it’s not worth it go no contact. I also like how if HE fucks up it’s on him. So gives me audit protection
Your tax situation is normal as any other individual, so why do you need to spend 4K. Unless you own a company, I don’t see how you will save on taxes. Don’t waste your money.
Just get a financial advisor for that price. The CFA exams are harder than the CPA from my understanding and more appropriate for investment advice. Taxes, do it yourself, or pay $400 or so.
More than a CPA you need a fee only financial planner
Your CPA is trying to become your financial advisor and the two are very different things. Lookup fiduciary financial advisors if you need them, else stick with just the tax filing for CPA.
How much did they quote for their services?
$4k flat fee for 12 months. We'd meet 4x/year for 90 min or 12/month for 30 min
Sounds like a scam