Skip to main content
Different tax professionals have different qualifications, specialties, and authority. Understanding who does what helps match the right professional to your situation. For real estate matters, experience with property transactions often matters more than credentials alone.

​
Types of Professionals

Licensed by state after passing rigorous exam and meeting education and experience requirements. Must complete continuing education to maintain license.Can do:
  • Prepare and sign tax returns
  • Represent clients before IRS
  • Provide audit support
  • Offer tax planning advice
  • Prepare financial statements
  • Provide attestation services
Best for:
  • Complex tax situations
  • Business owners and investors
  • Audit representation
  • Year-round tax planning
  • Rental property portfolios
Cost: Higher than other preparers. Typically $300 to $1,000+ for individual returns with real estate.
Federally licensed by IRS after passing three-part exam or working at IRS. Specializes specifically in taxation. Must complete continuing education.Can do:
  • Prepare and sign tax returns
  • Represent clients before IRS (same authority as CPAs)
  • Handle audits, collections, and appeals
  • Provide tax planning advice
Cannot do:
  • Prepare audited financial statements
  • Provide non-tax accounting services
Best for:
  • Tax preparation and planning
  • IRS representation and audits
  • Those wanting tax specialist without CPA fees
Cost: Generally less than CPAs. Typically $200 to $500 for individual returns with real estate.
No licensing or exam required in most states. Must have Preparer Tax Identification Number (PTIN) from IRS. Quality varies widely.Can do:
  • Prepare and sign tax returns
Cannot do:
  • Represent clients before IRS (except for returns they prepared, and only during examination)
  • Handle audits, appeals, or collections
Best for:
  • Simple returns
  • Basic W-2 income with standard deductions
Cost: Lowest cost option. Typically $100 to $300.Caution: For real estate matters, consider credentialed professionals who can represent you if questions arise.
Licensed attorney specializing in tax law. Passed bar exam and typically has advanced tax law degree (LLM).Can do:
  • Everything CPAs and EAs can do
  • Provide legal advice on tax matters
  • Represent in tax court
  • Handle criminal tax matters
  • Draft legal documents with tax implications
  • Provide attorney-client privilege protection
Best for:
  • Tax litigation
  • IRS criminal investigations
  • Complex estate planning
  • Business transactions with major tax implications
  • Situations requiring confidentiality
Cost: Highest cost. Typically $300 to $600+ per hour.

​
Quick Comparison

ProfessionalLicensingIRS RepresentationBest For
CPAState licenseFullComplex situations, businesses, audits
Enrolled AgentIRS licenseFullTax-focused needs, IRS issues
Tax PreparerPTIN onlyLimitedSimple returns
Tax AttorneyBar + tax specialtyFull + tax courtLitigation, legal matters

​
For Real Estate Specifically

Real estate tax matters benefit from professionals with property experience regardless of credential type.
  • Experience with real estate transactions
  • Knowledge of rental property taxation
  • Familiarity with 1031 exchanges
  • Understanding of cost basis calculations
  • Experience with capital gains planning
  • How many clients do you have with rental properties?
  • Are you familiar with 1031 exchanges?
  • Have you handled cost segregation studies?
  • Do you work with real estate investors regularly?
  • Can you help with tax planning before I sell?
A CPA who only handles simple W-2 returns may be less helpful for real estate than an enrolled agent who specializes in property investors. Experience in your specific situation matters.

​
Specialized Roles

CPA specializing in real estate clients. Deep knowledge of property taxation, investor strategies, and industry-specific deductions.Ideal for landlords, investors, and real estate professionals.
Not a tax preparer but essential for 1031 exchanges. Holds sale proceeds and facilitates exchange to meet IRS requirements.Must be independent third party. Cannot be your accountant, attorney, or agent.
Engineers and tax professionals who analyze properties to accelerate depreciation deductions. Identifies components that can be depreciated faster than standard 27.5 or 39 years.Typically worthwhile for properties over $500,000 in value.
Specializes in challenging property tax assessments. Works on contingency (percentage of savings) or flat fee.Different from income tax professionals. Focuses on local property valuations.

​
When You Need Multiple Professionals

Some situations require a team: 1031 exchange: Tax advisor for planning, qualified intermediary for execution, possibly attorney for complex structures. Large portfolio: CPA for ongoing tax work, cost segregation specialist for new acquisitions, property tax consultant for assessment appeals. Audit or dispute: CPA or EA for most audits, tax attorney if criminal issues or litigation likely. Estate planning with real estate: Estate attorney for legal documents, CPA for tax implications, possibly appraiser for valuations.

Next: Tax Implications - Buying

Deductions, credits, and establishing cost basis

Find Tax Professionals

Research CPAs and tax professionals with real estate experience