Find a Short-Term Rental CPA

Generalist CPAs handle Schedule E mechanically. Real estate CPAs structure entities, run cost segregation, coordinate 1031 exchanges, and qualify clients for REPS — the work that actually moves the tax bill. On a real estate portfolio, the planning gap between a generalist and a specialist easily covers the fee multiple times over.

Typically on depreciable basis of $500K+. Below that, the study fee (often $4K–$8K) can exceed the present-value benefit. Cost seg is most powerful when paired with bonus depreciation in high-income years, or with Real Estate Professional Status to offset W-2 income.

You need 750+ hours in real property trades or businesses, AND more than half of all your personal services for the year must be in real estate. You also need material participation in each rental, or you file an aggregation election treating all rentals as one activity. Keep a contemporaneous hours log — the IRS routinely disallows REPS for poor documentation.

If your STR's average rental period is 7 days or less AND you materially participate, the property is no longer a passive rental. Losses (especially from cost seg and bonus depreciation) can offset W-2 income directly — without needing to qualify for REPS. It's one of the highest-ROI strategies for high-income professionals adding their first investment property.

You sell an investment property, the proceeds go to a Qualified Intermediary (you cannot touch them), and you identify replacement property within 45 days and close within 180 days. The gain is deferred — not eliminated — into the replacement property's basis. Done right, you can roll gains forever and step them up at death. Done wrong, you owe tax plus penalties.

For meaningful liability isolation, yes. Most attorneys recommend one LLC per property, or grouped by risk profile. Weigh that against annual state filing fees and the cost of multiple partnership returns if the LLCs have multiple members.

Schedule E preparation runs $300–$600 per property. Partnership returns run $1,200–$3,500. Full-service real estate CPAs handling bookkeeping, tax planning, and returns typically charge $5,000–$40,000+ annually, depending on portfolio size and complexity. See the pricing table on this page for the full breakdown.

No. Most real estate CPAs work remotely with clients across the country. What matters is whether they know the federal real estate tax code cold and can coordinate state filings wherever your properties sit. Local matters only when state-specific rules (like California's 1031 clawback or Texas franchise tax) demand fluency.