Annual accounting costs?

I was hoping other people on the list might be able to answer a question.

How much are you paying to the accountant to file your annual taxes for your co-op. basically we’ve just filed for the year this week and it costs us $1,000  year for all of the documentation/preparation (same as every year). This seems really high to me for what is realistically a very straight forward small 6 unit co-op.   Any comments?

deancollins

in Accounting 12 years and 2 months ago

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brokelin | 12 years and 2 months ago

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Don’t think the price is unusual, or unwarranted.  But in my experience with sales in my 4-unit coop, I can say banks never required a financial statment provided by a professional – the annual financial statement we provided the banks was done by the Treasurer, and quite simple.  They basically want to see that your income (maintenance) is enough to cover your operating expenses. That said, it was clear that the tax returns we provided were done by a professional, and you do need this, as there is depreciation and such to be taken into account when preparing the forms.  The mortgage interest and property tax paid to put on the 1099s are easy to calculate, but the part of the expenses that is for capital improvements that is listed on that form, which you can add to your basis when you sell to reduce your capital gains, is not obvious or easy to calculate, at least for me.  That, and the depreciation of the asset (building) on the tax forms, is a bit more complicated than I’d want a board member to do.  I’d rather pay a professional than try to wrap my mind around that to get it right, and I’m someone who does my own taxes.

ejalbk | 12 years and 2 months ago

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PS- Does your co-op email the CPA say a few Excel spreadsheets detailing everything or do you just dump a checkbook in his lap? It makes a big difference in how much work is actually involved for the CPA. Also, does he/she have to come to your office to get what he needs or is everything done via email?

liztallor | 12 years and 2 months ago

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Rafique and associates llc  CPA located on 474 mcdonald ave, phone:718 431 0632 proffessional and resonable fees.You may try with them.

ejalbk | 12 years and 2 months ago

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$1150 for an 8 unit co-op here. To a limited extent, a 4 unit co-op is nearly as much work as perhaps a 16 unit co-op so you’re suffering more from diseconomy of scale than an expensive accountant. Also, is the guy a CPA or just a tax preparer, If he’s a CPA, it’s always going to cost more.

bhabe | 12 years and 2 months ago

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We pay $1,400 for a 4-unit coop, so that looks reasonable to me. Our fee has been steadily increasing.