Discussion:Unbelievable Yikes! S Corp Rental Real Estate

And I wonder about some of the shortcuts I've taken. Just had to share.

Sorry to digress, JR, but maybe you could give this guy your old employer's name. Sound perfect together. Your story is beautiful; I suppose you never told them about real estate pro's. But they did use an S Corp.....could have been worse....the properties could have been in a C.

This guy has thrown enough in to get most of the losses. They did actually track basis and loss limits! But have no idea how I'm going to break up all the properties for past stuff. They are all on depreciation fortunately. . .but what a mess. Well, every now and then you need some encouragement that you do know more than some of the others out there...so I'll take this. And there will be big money to earn here.

can you say "Errors and Omissions Claim"?

I took the exam in 1983, I think, and then again in 1992 or 1993 because I had not kept my CPE requirements due to a family tragedy. In the ten year interval, the difference in those taking the test was amazing. In 1983 in Philadelphia I would say 80-85% were men; by 1993 perhaps 60% were women.

From your answers here JR, I think you will do just fine! And I will be the second [behind Sandy] to welcome you to the ranks.....I suppose Kevin would be first if you used a NATP course!!!

I have read much from Kevin and others about being a tax professional. A CPA is NOT a tax pro and due to the very complicated clients I have encountered recently, a tax professional designation is more important to me than a CPA certificate.

Yes, I worked hard to get it but I want to work hard also getting a designation for what I do more often than not.....taxes...

Call me crazy...but it is my desire whether or not I keep the CPA; I want the EA as well :)

But then I look at KEVIN....RILEY....DENNIS....KATIE....many many others and I see they have a taxation background that can only be learned by either doing it or by being adorned with a designation that gives them a much more broad knowledge of taxation.

Attorney's can practice before the IRS...do they know taxes? Most often, no they know the law whether it be criminal or tax or civil. Actuaries can practice...what the hell is an actuary? But nonetheless, any of these CAN practice before the IRS...can they do it well? Even unenrolled preparers are sometimes more efficient in taxes than I am, or an attorney is or an actuary (there is that word again...hehe).

Don't put yourself down Tony....

Forgive me if I am generalizing here, but I find that CPA's tend to run larger, year-round practices that provide great training grounds for soon-to-be Tax Pro's. EA's and unlicensed Tax Pros tend to (and probably prefer to) run solo, seasonal practices.

Sandy, Why give up your CPA designation? I don't know what your license requirements are in your state. In CA, it is only 80 hours of CPE every 2 years and a couple hundred bucks to the State Board of Accountancy. The return on that investment of time and money certainly pays off for me.

I think CPAs are more collegial, and they seem to attend seminars in groups from offices.

Do EAs, on average, charge less for tax returns than CPAs? I wonder.

Do clients generally expect to pay more to a CPA firm than to a solo EA? Probably.

Are CPAs usually more qualified to prepare tax returns than EAs? Some are, and some aren't.

Sandy, obviously you need to do the cost/benefit anaylsis of keeping the designation, but I'll share this with you. Quite a number of years ago I passed the Series 7 exam. I didn't do anything with it because I had changed jobs and thought I would not use it. Here we are 15 years or so down the road and look what's happened to the financial services profession . . . CPAs and others are getting involved in financial planning. I think having the designation simply opens more doors for you.

Remember the post about 2 months ago from the CPA who asked how to get into auditing?

I was under the mistaken assumption that CPAs learned something about auditing that qualified them. I wonder how many other non-CPAs thought the same thing? The same can be said about taxation. Most of the public have made assumptions which aren't being corrected.

So much to think about. I worked in a large town and the firms I worked with you HAD to have a CPA to do anything...work in audits, tax, etc. I moved here and worked in private accounting for a large retirement corporation...have several retirement homes and manage them all financially. I did not like it, nor did I want to go back to that.

No...a few hundred dollars per year and CPE may not be the long and short of it, but it sure adds up when you are building a practice. Insurance, rent, internet, telephone, paper, etc etc adds up. If I can gain more tax clients by purporting myself as a tax professional, then perhaps I can keep the CPA as well. Right now, when a new client comes, yes I can tell them CPA in FL. I have clients in CA, TX and ME as well as internationally...word of mouth, but I can't help them when it comes to their individual states unless I get certified to practice in those states. As an EA, that is all I need...except for CA I hear :)

I too denigrated EA's prior to learning about them and their expertise. I felt that having a CPA, I knew more...yeah right!! But for today this is a very mixed discussion...as I said, please forgive if I sound harsh...not meant at all :)

There are many CPA's who worked their entire careers in the TAX DEPARTMENT! We only got enough audit time to get the CPA license and after that - we worked tax. We do prepare monthly accounting and issue compiled financial statemtents and only this type of F/S ONLY because the clients need the service. Banks and others require it. The rest of the time we work in tax. Everyone (at least those who are income earning individuals/businesses) needs annual tax returns.

I have CPA clients who work audit (I hated audit) and would never attempt their 1040's.

This unethical crap directed to CPA's is unfortunately starting to get under my skin.

OK, done. Did I still leave my mark high enough on the wall?

We all have strengths and weaknesses. A true professional should be able to recognize those strenghts and weaknesses and look to strenghthen those weaknesses by taking CPE classes to better themselves or come to places like here for direction and assistance. That is where hopefully we and others come in to not only help those others but ourselves as well when we need assistance.

We as professionals need to be working for the same outcome no matter what our background is. In my mind that is to maintain the honesty and professionalism within this profession that we all demand and expect. I do believe those are also your intentions.

I wonder why? Could it be the CPA marketing association and the regulatory obstacles the government creates for their lobbyists?

BTW Sandysea, you really shouldn't give up a license you already have.

It is interesting to note that larger outfits are generally run by CPA's, while the EA's and 'nuttin's' tend to work alone. I wonder what that means...?

I have worked for a firm of auditors in their small tax department. But they had no problem with asking me tax questions and admitting that their knowledge of the IRC was not that deep. Audit is a differant world. I have done several 1040's for CPA's who were auditors,(and smart enough not to do their own taxes).

I agree that the designation does not mean you know any more that anyone else, just tells people that you are licensed and presumably good enough not to lose said license. But I think the way you really learn is by doing.

75% to pass the EA exam? I guess I made it just in time. Good luck, its tough but very pass-ible. A good review course works.

CPA vs. EA, THE RUMBLE IN THE JUNGLE PART IV ?

What do you call a law student who passes his Bar with the worst score?

An attorney

You can substitue CPA or EA at your own discretion.

When I search the little yellow box for 'EA' nothing shows up? You searched for EA Jump to: navigation, search Ask a question about :EA. Create a new article with the title EA. For more information about searching TaxAlmanac, including "Phrase Searches", see Searching TaxAlmanac.

No articles contain your search terms.

I hope everyone has a GREAT weekend !!!!!!!!!!!!!

Try searching Enrolled Agent [like this]

Hey, just for giggles I tried searching CPA and what do you know, not many Treasury Regs use that term, but quite a few came up in the Enrolled Agent search. Wonder why?

I don't know anything I'm just a CPA

hehehe

bc Treasury Dept created the EA?

I like #4 in the "Article Content matches' when you do a search for 'CPA' , huh I guess we are better LMAO

oops just saw the 'dangerous' part

1. EA's swear CPA's know little about taxes;

2. CPA's deny this and reply that EA's know nothing of accounting or the attest process.

3. Flames are fanned until the discussion almost gets out of control. An unenrolled, non-certified preparer shouts pox on both your sides.

4. Then diplomacy breaks out and an EA is heard to say, "Why some of my best friends are CPA's;" a CPA responds likewise, but changes his bosom buddy to be an EA, and everyone tells Mr. No-credentials how much they admire his or her work.

5. A clear thinker writes, "Why can't we call get along?' Peace, and the singing of Kumbaya, breaks out until the next time through, when everyone puts on the same costumes again.

This dialogue is as regular as the tides here at the shore, or like the cleansing of monsoon season in India. I wouldn't have it any other way.

This must really take the prize. I'm both a CPA and an EA, and I enjoy the benefits (and also bear the consequences) of both credentials, in addition to the Series 7 NASD license. All I can say, is the outside world has for so many years been brainwashed into understanding what a CPA is, but doesn't have the slightest idea of what an EA is. But when you think about it, an EA has the same qualifications and credentials in the IRS's eyes (and increasingly state tax authorities) as a CPA. When I became a CPA I had to, under Circular 230 rules at the time, return my T card, as I could not have both. Mid nineties Circular 230 was changed, and an EA was permitted to have both licenses. I reactivated it because I felt that since I preferred doing tax work, I could do that regardless of which state I resided, but the CPA license may not be recognized in every state.

Sandy - seems like (at least in part) you're thinking about the costs involved with keeping your CPA. Would any CPE's count toward both your CPA and your EA? I'm a believer in the "if you don't ask, the answer is always no" school. See if your insurance coverage would cover you for both with little or no increase in premium. I (like other's here) would hate to see you give up a designation that you've worked hard to get. There are certain clients, bankers and attorney's that will only deal with a "professional" which they equate with a CPA.

I'm frequently asked by prospective clients "Are you a CPA?" They don't know what it means but have been trained to believe that something other than a CPA is simply not as good. I explain that I am not a CPA but do about 75% of what they do for about half the cost. That usually wins them over. If they're still hesitant (and I want the business), I explain that I work with CPA's and can refer them for anything that they specifically need a CPA.