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We just bought a building about1/2 hour away from us. It's large and beautiful. We rented out two offices to a husband and wife lawyer team. Hired a former bank rep who lives in the community. We do taxes as well so we bought a small tax practice with the CPA owner coming on board as a W-2 for 2-5 years until retirement. Then we renovated a studio apartment in the building where we will sleep on night a week and do appointments the following day. Our current office will get us the other 4 days. We hope the new office will do 1m within 4 years.
We are EA's and our tax practice came about because our investment customers always asked us if we did taxes. There were so few choices except the big boxes. Our new office is in a small town where we don't have a base so it made sense to buy the tax practice to have customers to start with. We train everyone to do personal returns to spread the work and only take on customers who we can spend quality time with and one day will be good investment prospects. We price EIC higher than the big box and don't do rapid refunds so we don't get that clientele. The cost of a tax practice is minuscule compared to an investment practice.