Topic

5-Mar-2021 2:01pm

I'm curious how much you normally charge for a 754 election?

Real estate partnerships. Commercial property worth $1-2 million, give or take. One partner sold interest to 2-3 partners.

Of course, I find out about it right now, during prep...

I have experience with 743(b) and 734(b), just my first time doing one on my own.

5-Mar-2021 2:34pm

Since everyone is shy, I'll throw out a figure, and you tell me if it's insanely too high, or way too cheap.

An additional $800 per return?

5-Mar-2021 2:50pm

I don't have experience with this but $800 seems reasonable.

What the 800 relative to the total invoice for last year, or expected for this year.
If you sell it well enough you can probably get 40-50% for the one off complication, but as you know, you need them to understand the value, before they agree to buy it.

I try to target anything with $1mil in gross receipts, or $1mil in assets to be a $3000 tax prep.
Works well for multi member restaurants, and the like.
A little harder on real estate holdings that really have minimal reporting for rental income and expenses.

5-Mar-2021 3:03pm

If anyone remembers my post in the PFZ...this is the client that is around 50% of fair market rates.

$800 is less than 50% of the discounted rate. It would be between 20-33% of the fair market rate.

If the returns were fair market, I might charge over $1,000, but I'm okay with $800 here...

5-Mar-2021 4:56pm

I wouldn't charge any extra for the 754 election.

For calculating the 743(b) ADJ?
Probably an extra 500-800. Depends on the complexity and availability of information. I have one that routinely ends up near $1,500/sale (with multiple sales each year), but it's ridiculously complex.