As we head into the new year and tax time is approaching, now is a good time to ask if you’ve taken steps to ensure you have the best team (that’s right – team) working on your side. BAM founder and CEO, Ivan Barratt, discussed in a previous blog what he recommends (and why); and the start of the year is a good time to review Ivan’s advice. We also share how multifamily investing has some great tax benefits!
A Quick Refresher on What You Need (and Don’t)
Ivan recommends that while you may have been covered just fine using a sole-proprietor CPA at some point in your career, once you’ve reached the point of being a serious investor, you really need a team backing your play. That’s why Ivan strongly recommends going with an accounting firm instead of a one-person CPA shop.
The Pros of an Accounting Firm
- You get specialized service. A standard CPA has good, broad knowledge; however, in many situations more specialized expertise is called for. With a firm you’ll have people who focus on very specific areas like real estate, operating companies, or physicians’ portfolios.
- Current legal/tax info. With the complexity of the tax laws, you want someone who is as up-to-date as possible. Another benefit is you’ll also likely have the advantage of a tax attorney on staff.
- Increased accuracy. This one may be your biggest take-away. The difference between using a standard CPA and an accounting firm can cost you – big time. Ivan once saw a $15,000 loss flip to a $15,000 gain when he went from his former CPA to an accounting firm! A mistake with a CPA could be an expensive one. A firm offers a big talent pool and specialized experience to handle your needs.
Tax Benefits of Multifamily Investing
If you visit ivanbarratteducation.com, you can learn from Ivan himself about the ins and outs of how BAM works with our investors, structures deals, and more. Below you’ll find Ivan sharing the benefits of real estate investing as compared to other types of investments. An investment with BAM is not the same as buying into a REIT or some type of stock. The way BAM is structured, buying into a multifamily deal with us is actually very similar to going out with a partner and buying a duplex: we own it together and share in percentage ownership of the tax advantages. These being: depreciation, amortization, and interest expense, etc. As Ivan notes, the tax advantages in real estate are huge; the advantages also increase the bigger the deals are. To see what this means for investors, watch below.
Want more info on multifamily investing? Go to investments.barrattassetmanagement.com and sign up for an account. Once there, under “offerings” you’ll find a free library with articles and videos featuring Ivan and his insider knowledge and insight, as well as a ton of info on BAM, its team, track record, and offerings.