A rental property CPA for landlords who want the return right every year.
Schedule E returns, depreciation schedules, passive loss tracking and per-property books for rental owners with one door or fifty. Based in Richmond, Texas, working with landlords across Houston, Fort Bend County and nationwide. Published fees.
What a rental property CPA handles
- Schedule E, property by property — income, expenses and depreciation reported for each address, tied to a workpaper
- Depreciation set up correctly — a documented land and building split, the right placed-in-service date and the right life, because the first year’s setup follows the property for decades
- Repairs and improvements — what is deducted now and what is depreciated, with the elections that let you deduct more of it now
- Passive loss tracking — losses you could not use carried forward per property, so they are there when you sell
- LLC and partnership returns — when the property is owned with a partner or through more than one entity
- Planning before December — purchases, sales, cost segregation and estimated payments looked at while there is still time to act
For the full list of what a landlord can deduct, see rental property tax deductions.
What we fix most often
- Depreciation that was never taken, or was taken on the wrong life. Fixed on Form 3115 in the current year, without amending. See the Form 3115 guide
- No land value, so the whole purchase price is being depreciated
- A new roof or HVAC system added to the schedule while the old one is still being depreciated
- Suspended losses that were dropped when the return moved from one preparer or software to another
- A rental held in an S corporation, which causes problems when you refinance or take the property out
Can a rental loss offset your other income?
Sometimes. Rental losses are passive by default. Up to $25,000 can offset other income if you actively participate, and that allowance phases out between $100,000 and $150,000 of income. Above that, the loss carries forward unless you qualify as a real estate professional, run a short-term rental you materially participate in, or have other passive income.
The four routes are explained in can rental losses offset W-2 income. If a bigger first-year deduction would help, see cost segregation CPA services.
Fees
Published, like everything else here.
| Service | Fee |
|---|---|
| 1040 with Schedule E — rental properties | from $850 |
| Each additional state | $150 |
| Partnership return, multi-member LLC | from $1,400 |
| Rental work, 3 to 10 doors in a single LLC | from $1,800 a year |
| Rental work, 10 to 25 doors | from $3,200 a year |
| Monthly bookkeeping, rental portfolio of 3 to 10 doors | from $750 a month |
| Form 3115 catch-up depreciation | quoted on scope |
The full fee schedule has the rest.
Who this suits
- W-2 earners with one to four rentals who want the depreciation and loss carryforwards kept right
- First-year landlords, where the setup decisions are made. See the year-end checklist for a rental bought this year
- Owners with rentals in other states, where each state wants its own return
- Growing portfolios that need books by property and an entity structure that makes sense. See LLC for rental property
- Short-term rental owners. The rules are different, so they have their own page: short-term rental CPA
Common questions
How much does a CPA charge for a rental property tax return?
A 1040 with Schedule E starts at $850 here. The fee goes up with the number of properties, each additional state at $150, and books that need to be fixed before the return can be prepared.
Do I need a CPA if I only own one rental property?
In the first year, usually yes. The land and building split, the placed-in-service date and the depreciation method are set once and follow the property until you sell it. A purchase, a sale, a move from your home to a rental or a short-term rental is also worth a CPA’s time.
Can you fix depreciation that was never taken on my rental?
Yes. Form 3115 lets you deduct all of the depreciation you missed in the current year, without amending prior returns.
Should my rental property be in an LLC?
For income tax, a single-member LLC usually changes nothing. The rental still goes on Schedule E. The reasons to form one are liability and title, and in Texas an LLC comes with filings every year.
Do you prepare returns for rentals outside Texas?
Yes. Most states where you own a rental want a return, and those are prepared with your federal return at $150 per additional state.
What records do you need from me?
The closing statement from the purchase, last year’s return with its depreciation schedule, income and expenses for each property, the mortgage interest statement, property tax and insurance bills, and a list of improvements with dates and costs.