My personal financial situation probably isn’t that complicated in the eyes of the average professional, but to me I’m starting to feel like I could use some expert consultation.
This year I will start renting a second property, and I’m unsure how to navigate the taxable implications, legal/insurable implications, etc.
Things like, “would it be beneficial to run all rental operations and financials through an LLC?” or “how do I stay proactive about taxable implications given this new income?”
Are these personal enough to my situation where I should just bite the bullet and hire someone? Or is this all simple enough where I trust a general consensus of a bunch of redditors?
Trying to decide when it’s time to work with a CPA/CFP
byu/kygei inpersonalfinance
Posted by kygei
3 Comments
honestly once you start renting out a second property that’s probably the time to talk to someone. the LLC question alone is worth getting a real answer on since it depends so much on your specific situation
I would have an LLC and go into H&R Block if I had one rental property. If I had two rental properties and was unsure of how of the legal and insurance requirements and record keeping and tax optimization best practices then I would definitely go in person to an accountant to consult. I do not think you need a certified financial planner but a small business accountant should be able to help.
The moment you start asking “should I have an LLC” is exactly the moment you need someone with a license to answer it. That question has real legal and tax consequences and the answer genuinely varies by state and situation. Reddit consensus is fine for budgeting apps, not for this.