Landlords spend a lot of time assembling the best team of property managers, contractors, and more, but they tend to forget to add a real estate attorney and accountant to the team. A real estate attorney and an accountant who are knowledgeable on landlord-tenant laws, as well as tax laws in your state, can be beneficial to have by your side. They will be able to answer your rental-related concerns and assist you when it’s tax season.
Landlords often find themselves in sticky situations since they do not entirely understand the law. To avoid unintentional violations, it would be a good idea to partner with professionals. A CPA and an attorney can take on complicated duties that could cost you thousands of dollars if not carried out correctly.
In this post, you’ll find a few reasons why working with a CPA and a real estate attorney should be a non-negotiable. We’ll also walk you through how to find the perfect tax professional for your rental property.
5 Reasons Why You Need to Hire a CPA or Property Tax Attorney
Here are a few reasons why you should work with tax professionals:
#1 They Have the Expertise
When you work with a CPA or property tax attorney, you’ll be able to access their wealth of experience and expertise. They’re well-versed in everything related to property taxes, and they have the know-how when it comes to the appeal process. A CPA and property tax attorney can provide your rental property business with invaluable advice.
#2 They Can Save You Time
Taxes aren’t on the top of your to-do list. You’re likely busy with work or with other businesses you need to take care of. With that said, you do not have the time to learn how property taxes work, let alone to appeal your property taxes. Dealing with taxes on your own can be time-consuming, so it’s best to work with a CPA or real estate attorney who can deal with it for you. They know how the law – as well as processes, requirements, etc. – work, so they can get things done quickly.
#3 They Can Save You Money
Suppose your property taxes are excessive, but you do nothing about it because you aren’t aware that you’re eligible for certain tax breaks. Or maybe your tax bill is thousands of dollars too excessive because you didn’t notice an error in its tax-appraised value. A CPA or property tax attorney can pinpoint what tax deductions you qualify for. That way, you won’t end up footing the whole bill and you’ll be able to lower your taxes.
#4 They Can Go Over Your TRIM Notice
When you get your Truth in Millage Rate (TRIM) notice, you’ll be able to see your total tax bill. The TRIM notice can be complicated, so it’s best to have a CPA or real estate attorney review it for you.
Because your CPA has been with you over the years, they will be able to establish a baseline of your real estate investment’s value. By now, they should be able to estimate how much your home is worth. They understand what the numbers stand for and should be able to determine if your bill is correct. If they find that your TRIM notice is incorrect, they can assist you in the appeals process.
#5 They Can Help Appeal Your Property Taxes
It can be time-consuming to challenge your tax bill. When you receive your TRIM notice, you’ll have to appeal it within 30 days and then wait for a decision. If the local assessor’s office dismisses your appeal, you’ll need to appeal it to the courts. Depending on how congested the courts are, you’ll need to wait for the final decision – unfortunately, this can take up to a year.
That’s why it helps to have a CPA or real estate attorney’s assistance. They can deal with the appeal while you work on rental-related tasks such as screening tenants, purchasing new properties, etc. In short, you can concentrate on property management.
How to Find a CPA or Property Tax Attorney
If you don’t know where to start, don’t worry. Here’s how you can find a tax professional for your rental property:
- Referrals From Other Professionals. If you want to find a property tax lawyer or CPA, ask for referrals from other professionals. You can talk to a real estate lawyer who has connections to a lawyer who practices property tax law. Remember that not all lawyers are well-versed when it comes to tax law – some focus on certain fields, so choose your tax lawyer wisely.
- “Interview” Them. You’ll want to make sure that they’re up to the task. As a rule of thumb, it’s best to hire someone with a few years of experience than one without. Be sure to ask them if they’ve worked with similar properties before – if you own a single-family home, ask them if they’ve ever prepared taxes for a single-family home.
- Ask How They Want to Be Paid. Tax professionals can choose how they want to be paid. It’s important to be very clear about the payment process, as you may end up with an unexpectedly excessive bill.
- Partner With a Property Management Company. If you don’t have the time to look for a CPA or property tax expert, you can partner with a property management firm. They’ll have everyone you need for your property management team, including property managers, a network of vendors, as well as tax experts.
Work With the Tax Attorneys and CPAs at Luxury Property Care
At Luxury Property Care, we’ve partnered with the country’s top CPAs, lawyers, and more to help property owners such as yourself with the more complex tasks. When you partner with us, you’ll have access to our team’s wealth of knowledge. In turn, we’ll make sure that your property is expertly managed, and that your taxes are filed promptly (and appealed, if necessary) year after year.