Financial planner recommendation for rental properties

M

Maserson

Active member
Can anybody recommend a good financial planner/tax attorney for my folks?

They've slowly accumulated rental property over the years, now over 15 properties. Some are SFR's, some small multi unit apartments and mixed commercial/residential.

They're old school so know little about tax implications. All they ever did was fix the properties and collect rent. They're mainly interested in incorporation and tax planning.

Thanks.
 
Maserson,
I know quite a bit about real estate taxation, depreciation, 1031 exchange, and self directed IRA. What type of your questions does your client have about their portfolio?
 
Panda said:
Maserson,
I know quite a bit about real estate taxation, depreciation, 1031 exchange, and self directed IRA. What type of your questions does your client have about their portfolio?
Click to expand...

Panda, be very careful about providing any type of tax advice if you are not a licensed tax professional as a licensed real estate professional.
 
Trojan.
My wife is a CPA who is a tax specialist and she knows her craft when it comes to real estate tax. I don't have a tax certification, but I do have real world knowledge when comes to real estate investing and real estate tax. Maseron is asking about a financial planner / advisor for his clients' rental properties. From my experience, most financial planners understands asset allocation, life insurance products, brokering stocks and mutual funds, but their knowledge in advising in the real estate investment area is not very strong especially when it comes to self directed Ira, solo 401k, depreciation, or tax deferred strategies like 1031 exchange. There is a difference from book knowledge and real world experience.

Just like not all real estate brokers who hold a CCIM designation are successful commercial brokers, not all CPAs are very knowledgeable when it comes tax strategies for real estate investments.
 
Panda said:
Trojan.
My wife is a CPA who is a tax specialist and she knows her craft when it comes to real estate tax. I don't have a tax certification, but I do have real world knowledge when comes to real estate investing and real estate tax. Maseron is asking about a financial planner / advisor for his clients' rental properties. From my experience, most financial planners understands asset allocation, life insurance products, brokering stocks and mutual funds, but their knowledge in advising in the real estate investment area is not very strong especially when it comes to self directed Ira, solo 401k, depreciation, or tax deferred strategies like 1031 exchange. There is a difference from book knowledge and real world experience.

Just like not all real estate brokers who hold a CCIM designation are successful commercial brokers, not all CPAs are very knowledgeable when it comes tax strategies for real estate investments.
Click to expand...

My point is the real estate regulations specifically states that unless you are a licensed tax professional (CPA, EA, etc) you are not allowed to provide any type of tax advice to your real estate clients same goes for investment advice.  I wouldn't want you to get your hand slapped by your local real estate authority. 
 
Trojan,

Financial products are regulated by the state and the sec. You will need your series 65 and become a investment advisor representative to provide investment advice related to financial products and getting compensated for it. Series 7 and 6 are governed by FINRA. I think the fine line is if you are getting compensated for the financial advice you providing related to securities.

Please show me a source or link where a real estate professional are not allowed to discuss or advise on real estate investment related topics pertaining to income property investments.
 
Unsure on RE portion. 

But for FINRA and SEC purposes, it's irrelevant if you are getting compensated.  You first need to furnish a subject a form ADV prior to giving investment advice. 
 
Panda said:
Trojan,

Financial products are regulated by the state and the sec. You will need your series 65 and become a investment advisor representative to provide investment advice related to financial products and getting compensated for it. Series 7 and 6 are governed by FINRA. I think the fine line is if you are getting compensated for the financial advice you providing related to securities.

Please show me a source or link where a real estate professional are not allowed to discuss or advise on real estate investment related topics pertaining to income property investments.
Click to expand...

I don't have time to dig it up right now but I read about regulations when I was taking my real estate CEs courses last year. 
 
USCTrojanCPA said:
Panda said:
Trojan,

Financial products are regulated by the state and the sec. You will need your series 65 and become a investment advisor representative to provide investment advice related to financial products and getting compensated for it. Series 7 and 6 are governed by FINRA. I think the fine line is if you are getting compensated for the financial advice you providing related to securities.

Please show me a source or link where a real estate professional are not allowed to discuss or advise on real estate investment related topics pertaining to income property investments.
Click to expand...

I don't have time to dig it up right now but I read about regulations when I was taking my real estate CEs courses last year.
Click to expand...
http://journal.firsttuesday.us/providing-tax-advice-to-clients/43097/
 
WTTCHMN said:
USCTrojanCPA said:
Panda said:
Trojan,

Financial products are regulated by the state and the sec. You will need your series 65 and become a investment advisor representative to provide investment advice related to financial products and getting compensated for it. Series 7 and 6 are governed by FINRA. I think the fine line is if you are getting compensated for the financial advice you providing related to securities.

Please show me a source or link where a real estate professional are not allowed to discuss or advise on real estate investment related topics pertaining to income property investments.
Click to expand...

I don't have time to dig it up right now but I read about regulations when I was taking my real estate CEs courses last year.
Click to expand...
http://journal.firsttuesday.us/providing-tax-advice-to-clients/43097/
Click to expand...

One of the commentators said it best (in particular the last paragraph)...

"Being both a tax attorney and broker, I need to comment on the article. The best way to summarize the agent?s role is that agent?s should educate themselves as much as possible about tax aspects of real estate, but they should make clear that any discussion of tax is informational only; as the article suggests, clients should only rely on tax advice from an attorney or ? for limited issues ? an accountant.

For example, agents can get themselves in trouble in a 1031 exchange by failing to understand what is ?like kind property?. Real estate that is sold with furniture and/or equipment needs to have the sale bifurcated into two exchanges or a real estate exchange and sale of the personal property. this can affect even SFR residential property, as vacation homes are often sold furnished.

The main value of a tax-savvy agent is to spot the issues and make sure a professional is retained to resolve them. That way the agent enhances his credibility but does not unknowingly induce the client to rely on agent advice."
 
Maserson said:
Can anybody recommend a good financial planner/tax attorney for my folks?

They've slowly accumulated rental property over the years, now over 15 properties. Some are SFR's, some small multi unit apartments and mixed commercial/residential.

They're old school so know little about tax implications. All they ever did was fix the properties and collect rent. They're mainly interested in incorporation and tax planning.

Thanks.
Click to expand...

You should take a look at books published by Nolo. (Highly recommended)
http://www.nolo.com/legal-encyclopedia/landlords







 
Yes, I agree that all "NOLO" books by attorney Stephen Fishman are very good. I own most of the books he has written.

One of my all time favorite authors related to tax is former IRS attorney and CPA, Sandy Botkins. I recommend that you guys buy a copy at your local book store.

Lower Your Taxes - BIG TIME! 2015 Edition: Wealth Building, Tax Reduction Secrets from an IRS Insider

Real Estate Tax Secrets of the Rich: Big-Time Tax Advantages of Buying, Selling, and Owning Real Estate.

Another favorite book of mine is written by CPA Tom Wheelwright called "Tax-Free Wealth"

Once you read these books, you will possess the knowledge to intelligently talk about your tax strategy and plan with your CPA.
 
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