Choosing the Right CPA for Real Estate Entity Structuring

by Stephen Morris CPA, MBT, CCIM

Tax savings. Legal protection. Portfolio growth. 🏢

🔑 Key Takeaways:

✔ What to look for in a CPA for real estate
✔ Why specialized knowledge matters
✔ How the right CPA can lower taxes & reduce risk
✔ Questions to ask before hiring
✔ Common pitfalls when choosing the wrong CPA 😬

🏠 Why Your CPA Choice Matters in Real Estate

Your entity structure is the foundation of your tax strategy, asset protection, and long-term growth.

Choosing a CPA who understands real estate is not optional — it’s essential.

A generalist CPA = missed deductions, audit risk & higher taxes.
A real estate CPA = smarter entity structuring, lower taxes & legal safety nets. ✅

📝 What to Look for in a Real Estate CPA

🔎 1️⃣ Specialized Real Estate Knowledge

✔ Experience with LLCs, S Corps, partnerships & holding companies
✔ Deep understanding of pass-through taxation & real estate-specific deductions
✔ Familiarity with 1031 exchanges, cost segregation & depreciation strategies

🔎 2️⃣ Multi-State & Multi-Entity Expertise

✔ Ability to structure entities across multiple states
✔ Knowledge of franchise taxes, filing fees & compliance rules by state
✔ Guidance on Series LLCs, holding companies & joint ventures

🔎 3️⃣ Tax Planning, Not Just Compliance

✔ Proactive advice to minimize tax liability year after year
✔ Not just filling out forms — but structuring your portfolio for long-term savings
✔ Regular review of tax law changes & how they impact your entities

🔎 4️⃣ Asset Protection Focus

✔ Helps shield personal assets from lawsuits & debt
✔ Understands how to structure ownership to minimize liability exposure
✔ Coordinates with attorneys to align tax & legal strategies

🔎 5️⃣ Experience with Investors at Your Level

✔ Works with small landlords up to large syndicators
✔ Familiar with the cash flow challenges & growth goals of real estate investors
✔ Can scale with your portfolio as it grows

❓ Questions to Ask Before Hiring a CPA

1️⃣ How many real estate investors do you work with?
2️⃣ Do you have experience with multi-state property portfolios?
3️⃣ What entity structures do you typically recommend for investors like me?
4️⃣ Can you help with tax planning, not just tax filing?
5️⃣ Do you offer advice on 1031 exchanges & depreciation strategies?
6️⃣ What’s your experience with IRS audits involving real estate?

Pro Tip: A great real estate CPA will answer confidently & offer to review your current structure for free or a nominal fee. 💡

⚠ Risks of Choosing the Wrong CPA

❌ Missed tax deductions
❌ Higher audit risk
❌ Poor entity structure = more liability exposure
❌ Overpaying state & federal taxes
❌ Inability to scale or bring on partners/investors
❌ Lack of proactive planning

The wrong CPA = more expensive than no CPA at all. 😬

🏢 Benefits of Choosing the Right CPA

✔ Lower taxes through smart structuring & deductions
✔ Protection of personal & business assets
✔ Compliance across federal & state jurisdictions
✔ Tax-efficient scaling as your portfolio grows
✔ Peace of mind knowing your finances are optimized

A good real estate CPA doesn’t cost you money. They save you money — year after year. 💸

🏁 Final Thoughts: Don’t Gamble on Your CPA

✔ Real estate investing requires specialized tax knowledge
✔ Choose a CPA with proven experience in entity structuring, tax planning & investor advising
✔ Ask the right questions — and don’t settle for less
✔ Your CPA should be a strategic partner, not just a tax preparer

Back to Advise RE Resource Center articles list

Asset Protection for Real Estate Investors
How to Avoid Double Taxation in Real Estate
Real Estate Entities and IRS Compliance
Real Estate Trusts vs. LLCs
Choosing Between LLC, S-Corp, and Partnership
CPA Guidance on Creating Real Estate Entities
Structuring Entities for Multi-State Properties