CPAs
Keystone CPA
Keystone CPA, Inc. is a CPA firm specialising in tax planning for real estate investors, business owners and high-income earners. It is based in Fullerton, California and works with clients in all 50 states, handling multi-state filings for investors who own property in more than one state.
The firm distinguishes tax planning from tax preparation and leads with planning: strategies are identified during the year while there is still time to act on them, rather than at filing. Engagements begin with a one-on-one discovery call to establish fit. Once onboarded, every engagement starts with a consultation reviewing the client's income, business, entities, investments and real estate holdings, after which the firm builds a written tax plan with specific strategies and implementation steps. Real estate strategies it names include cost segregation, entity structuring, passive loss planning, Real Estate Professional Status and the short-term rental rules.
Two published packages sit behind that work: a personalised tax strategy engagement at $19,995 that includes tax return reviews and unlimited private advisory calls and emails, and a comprehensive tax and wealth planning engagement at $39,995 that works with the firm's founders and outside advisors on business, real estate and retirement planning. Clients also have access to twice-monthly group strategy sessions.
Billing is flat fee rather than hourly, and the firm states its tax planning fees can range from as little as $20k up to $55k. Return preparation is available only to planning clients and carries a separate fee; monthly bookkeeping is also separate. Note that the site lists two different phone numbers, so confirm which to use before calling.
Best for
Investors, syndicators and high-income business owners with enough tax exposure to justify a five-figure flat planning fee, anywhere in the US. Not for someone who just needs a return filed.
What they do
- Proactive tax planning for real estate investors
- Written tax plans with strategies and implementation steps
- Individual, business and multi-state tax return preparation for planning clients
- Cost segregation planning
- Real Estate Professional Status analysis
- Short-term rental tax strategy
- Entity structuring and passive loss planning
- Comprehensive tax and wealth planning
Details
| Attribute | Value |
|---|---|
| How they charge | Flat fees rather than hourly. Published packages at $19,995 and $39,995; the firm states planning fees range from as little as $20k up to $55k. Returns and bookkeeping are billed separately. |
What stands out
- Bills flat fees rather than hourly, and states tax planning fees range from as little as $20k up to $55k
- Published packages: a personalised tax strategy engagement at $19,995 and comprehensive tax and wealth planning at $39,995
- Works with clients in all 50 states from its Fullerton, California office and handles multi-state filings
- Return preparation is offered only to tax planning clients and is billed separately, as is monthly bookkeeping
Common questions
- What is the difference between tax preparation and tax planning?
- Tax preparation is filing a return for a year that has already ended. Tax planning happens before the year closes and involves structuring income, entities, deductions and investments to reduce the amount owed. By the time a return is prepared, most opportunities to lower the bill have already passed.
- How much does it cost to work with Keystone CPA?
- The firm bills on a flat fee basis rather than hourly, so clients know the cost before work begins. It states that tax planning fees can range from as little as $20k up to $55k. Tax return preparation and monthly bookkeeping are available for separate fees.
- Can real estate losses offset W-2 income?
- Sometimes. Rental losses are generally passive and can only offset passive income. Two main exceptions exist: qualifying for Real Estate Professional Status, or owning a short-term rental where the average guest stay is seven days or less and the owner materially participates. A limited allowance for active participants also exists but phases out at higher income levels.
- What is Real Estate Professional Status?
- It is an IRS designation that allows rental losses to offset non-passive income such as wages. It requires spending more than 750 hours per year in real property trades or businesses, and more than half of all personal service time in those activities. The taxpayer must also materially participate in the rental activity, and contemporaneous time logs are essential if the position is examined.
- What is a cost segregation study and is it worth the cost?
- A cost segregation study identifies building components such as fixtures, flooring and land improvements that can be depreciated over 5, 7 or 15 years instead of 27.5 or 39, front-loading depreciation into the early years of ownership. The firm says studies generally make sense on properties above a few hundred thousand dollars in basis, but the benefit depends on whether the owner can actually use the resulting losses.
- Does an LLC reduce tax on a rental property?
- No. An LLC provides liability protection but does not by itself reduce federal income tax. A single-member LLC is disregarded for tax purposes, so income is reported the same way it would be without it. Entity structure affects taxes mainly for operating businesses, where an S-corporation election can reduce self-employment tax.