WCG Partners with BiggerPockets

WCG CPAs & Advisors is thrilled to partner with BiggerPockets. Located in Denver, Colorado, BiggerPockets is the premier online resource for real estate investing and strategy. They started in 2004 primarily as an education resource for real estate investors, and have grown to have over 2,000,000 members who collaborate, share stories and help each other.

BiggerPockets coined the BRRRR strategy by taking the original Buy, Rehab, Rent and Refinance and added the 4th R for Repeat. Love it! As Mae West says, “Too much of a good thing can be wonderful.” Let’s not forget another quote where she says, “You only live once, but if you do it right, once is enough.” We digress… but not too far off.

To help with creating a good thing and living life right, BiggerPockets has several podcasts aimed at different audiences, live webinars with Q&A sessions and a massive library of self-help videos and materials. They also have calculators and software recommendations to assist real estate investors in making sound decisions, sure, but also to efficiently and effectively operate their rental properties.

How does WCG fit into all this?

Recently BiggerPockets expanded its preferred vendors network by adding tax and financial services to the original core of real estate agents and lenders. All the pieces a real estate investor needs to be successful. WCG is a real estate forward CPA firm, and not just boring taxes but rather boring taxes filled with tax strategies and real-life consultation. It is one thing to say, “we know taxes” but it is a whole different thing to say, “we know taxes and we are landlords and investors too.”

Specifically, how does WCG CPAs & Advisors assist real estate investors-

Tax Planning

Tax planning is the first component and covers a myriad of real estate investing activities. How will this cost segregation report help me? When I sell this rental property, what will my taxes be? If I convert this property into a short-term rental (STR), what are the implications? If I buy that STR with a big cost seg, how will my taxes look? Do I increase my tax obligation today (pay more in taxes) to have more access to capital (keep in mind you primary objective is to build wealth… saving taxes is a close second, but it is second).

Tax Return Preparation

Tax return preparation is the compliance component. This includes proper rental property setup (many people forget to add acquisition costs and loan costs to depreciation schedules), correct handling of LTR to STR conversations, bonus depreciation, other accelerated depreciation with startup expenses such as furniture, and overall revenue and expense recognition. Let’s not forget the appropriate way to deduct travel expenses and how to protect yourself with personal use days.

Tax Strategy

Tax strategy is the final component, and probably the most fun because it involves thinking, discussion and vision. How can I claim real estate professional designation with W-2 income? What are the risks? How is a 721 exchange better or worse than a 1031 exchange? Do I put my rental properties into LLCs with a holding company? Should that holding company be a partnership with a tidy K-1 issuance to keep the nitty gritty rental activities off my 1040 tax return (and be safely contained on Form 8825 of the 1065 tax return)? There are tons of other rental tax strategies to consider!

Therefore, WCG partnering with BiggerPockets makes an insane amount of sense by pairing a CPA firm with strong real estate proficiency with real estate investors who have ambition and vision, mixed with questions. While both organizations are from Colorado, we both serve real estate minded people in all 50 states. For WCG specifically, over 80% of our clients are outside Colorado (and why not since 40% of the U.S. population lives within 100 miles of an ocean, right?).