Real estate tax and property tax are two terms that people use interchangeably but they are not the same. Real estate taxes are taxes that every homeowner must pay on an annual basis. These charges are determined by state and city municipalities.
The formula with which they arrive at the amount each homeowner must pay is a multiplication of the market value of the home by a percentage set by the municipality. This gives them the tax assessment value which is what the homeowner pays. Click here to see an example of real estate and property taxation laws.
Oftentimes people complain about how high their real estate tax is; this is usually more in highbrow areas and large cities. Well, the truth is that you can get a fair deal for these levies or even save money.
However, you cannot do this on your own; you need an expert to help you out. The experts who can help you sort out your real estate tax issues are none other than CPAs who specialize in that field.
In this article, we will share tips that will help you get the best real estate CPA for you so that you can get some reprieve on this and related taxes.
Who is a CPA?
CPA is short for Certified Public Accountant and this is a professional that has gone through additional training after their accountancy training. This certification qualifies them to handle more complicated financial issues such as taxation.
Some of the areas in which the service of a CPA is required include the following:-
- Auditing and review
- Financial planning
- Tax consulting and preparation
- Litigation consulting
- Consulting services
Tips for Finding the Best Real Estate CPA
As we mentioned earlier, only an expert can help you when it comes to issues of taxation on your landed property and home. That is why you must engage the service of a competent one to help you out. However, as with every profession, many people may have received the certification but are not the best fit for you.
To this end, we have curated below, some tips to help you spot the right CPA to work with:-
Check their Credentials
Anyone can call themselves a tax advisors; however, you need to ascertain that your prospective hire is duly certified. That a person is authorized to prepare tax returns does not mean that they are qualified to handle your tax issues; ensure that they specialize in the real estate tax.
A credible CPA will not hesitate to present proof of their certification to prospective clients. Any firm or individual who hesitates to present proof to you raises doubt about legitimacy.
Look out for Industry Expertise
Do not pick a professional who is a jack of all trades; look out for those with industry experience. In this case, you should be looking for a professional that specializes in real estate tax. In addition to their expertise in the field, they should show precedents of successful consultations and tax reductions.
Find out their Systems of Operation
Also, find out the system that they use to get tax reductions for their clients. Their system must be proven to be consistently effective and also ethical. It is in your best interest to hire a firm that has proven systems in place rather than one that operates haphazardly without any system in place.
Consider their Professional Network
A real estate tax CPA cannot operate in isolation. They need to have a strong professional network. Find out how well-connected your prospective hire is. Some of the professionals that they must have in their network include the following:-
- Mortgage brokers
- Real estate lawyers
- Insurance brokers
- Cost segregation specialist
These professionals are very important because as your business with the firm evolves, you will need these professionals. This therefore means that ready access to them is of paramount importance.
Consider the Type of Service They Render
Some CPA firms render generalized services which means that they just treat every case generically. This will not help you as much as firms that offer personalized service. Firms that offer personalized service, assign a staff to handle your case.
This designated staff with work with you, to understand your financial goals. They will also provide specific recommendations that will help reduce your tax liability every year.
Read Reviews
Make sure that you read reviews of past clients to find out their experience with the firm. You will get a feel of how they operate their rating in the industry and their level of expertise and success rate. You can visit adviseretax.com to see some reviews from customers of a CPA firm. You can also visit some independent review sites for more customer reviews on reputable CPA firms.
One more thing to bear in mind is the need for a thorough understanding of local tax laws. If for example, you reside in Los Angeles, you should find a professional who understands the city and its laws. Yes, Tax CPAs in Los Angeles may also have a good grasp of tax laws in other cities and even countries. Just be sure to confirm.
Conclusion
Handling your tax issues without professional help can cause you unnecessary stress. It is therefore necessary that you hire a competent Certified Public Accountant to save you the stress. We have shared some tips in this article that will help you as you go shopping for a CPA. Do well to bear them in mind so that you can make an informed decision.
