There are many situations in which people automatically turn to an accountant. Of course, the most obvious of these situations is everyone’s favourite time of year: tax time. Almost everyone, whether for personal or business taxes, will either hire, or at least seek advice from, an accountant to aid with their income tax return.
However, there is another situation – one that not everyone, but many, will go through at least once during their lifetime – where an accountant can prove to be very valuable.
We’re referring to the purchase (or sale, for that matter) of a home.
Buying a home is one of, if not the, largest transaction you will carry out during your life, and there are a lot of aspects of it that can be overwhelming, confusing, or just plain difficult to understand or complete – many of which an accountant can aid with.
Of course if you are comfortable with these tasks, you may not need to bother. However, if you are debating whether or not you should hire an accountant, and you’re not sure, the answer is probably yes!
How Can An Accountant Help?
First things first: you don’t just want to hire any accountant for this task. When dealing with the purchase or sale of a property, you will want to hire a real estate accountant specifically.
A real estate accountant is trained and experienced in dealing with situations relating to anything and everything real estate. They can provide you with advice and aid whether you are a buyer or a seller, looking for personal or rental properties, or even if you are a realtor or investor representing a client.
What They Can Do For You
Of course the most obvious, and most fundamental, way in which a real estate accountant can help you during your real estate purchasing transaction is with the tax related aspects.
Purchasing a home can have some adverse effects on your taxes. For example, there are a number of costs, such as your down payment and closing costs that are not tax deductible. Luckily, these are partially countered by various expenses, such as your mortgage interest and your property taxes that are deductible.
Taxes can be complex and can have rather powerful impacts on our financial lives if we are not careful in regards to our financial decisions and even how we file our returns. Purchasing a house is a huge undertaking, financially, and should be taken seriously and approached strategically.
So Do I Need A Real Estate Accountant?
We think you do – unless of course you are an accountant yourself and are familiar and well versed in the world of real estate.
When you are spending the amount of money associated with real estate, it is better not to take risks – a real estate accountant can help ensure you are making smart moves financially, and help you understand how this purchase will impact your financial future.
If you don’t hire an accountant, at least consult with one – you won’t regret it and neither will your tax return.
