Tax Is Stacked, Real Estate CPA Explains Tax Strategy and Clean Books
Featuring: Danny Flores (Orange County Power Players) and James Bohan, CPA, MRED
This conversation originally aired on Orange County Power Players, hosted by Danny Flores, where he interviews some of the most successful entrepreneurs in Southern California. In this episode, Danny sits down with James Bohan, CPA, fractional CFO, fund advisor, and fourth generation real estate developer, to unpack how tax strategy, clean accounting, and real estate fundamentals combine to build long term wealth.
James explains how his background across Big 4 accounting, private equity fund management, and hands-on development shaped the philosophy he now uses with syndicators, operators, and fund managers. From depreciation and tax free refinance strategies to clean bookkeeping and entity structuring, this episode dives into the systems behind successful real estate businesses.
Summary:
The tax code is built to reward real estate investors who understand how to use it. In this episode, James explains:
How depreciation, cost segregation, and refinance proceeds build wealth
The role of clean bookkeeping in protecting NOI, valuations, and credibility
Why 99 percent of Stonehan’s accounting clients are in real estate
Hybrid hospitality and workforce housing strategies
Why smaller deals can outperform large syndications
How a CPA firm can become the financial engine behind all real estate activity
Red flags James sees when reviewing operators’ books
The mindset shift required to scale as both an entrepreneur and investor
The conversation offers practical insight for fund managers, syndicators, operators, and developers who want to strengthen their financial foundation and scale their platform.
Watch the Full Episode:
FAQ's
1. What does “tax is stacked” mean for real estate investors?
It refers to how the U.S. tax code rewards real estate investors through depreciation, cost segregation, refinance proceeds, and long term capital gains.
2. Why do clean books matter so much?
Accurate books protect NOI, valuations, and refinancing ability. They also improve investor reporting and lender confidence.
3. Why are micro units and rent by the room models profitable?
They provide attainable workforce housing while increasing yield by converting underutilized space into income producing units.
📞 Book a Tax Strategy Call with James:
https://calendly.com/jamesbohan/book-a-call
📨 Connect With James:
LinkedIn: James Bohan, CPA, MRED
Instagram: @jamesbohancfo
Website: stonehan.com
Chapter Breakdown With Timestamps:
00:00 - Intro and James’ Background as CPA + Developer
01:34 - Why Real Estate Development Is the Path to (Almost) Zero Tax
02:53 - Stone Hand Accountancy: Tax Strategy, K-1s, and Fixing Bad Books
04:19 - Moving from OC to Idaho and the Lease Duration Flex Strategy
05:10 - Micro Apartments, Workforce Housing, and “Rent by the Bed”
06:32 - Small Deals, Bigger Ownership, and Humbling Down from Big PE
08:02 - Why James Keeps Both the CPA Firm and the Real Estate Biz
09:28 - Incentive Alignment: Avoiding “Do a Deal Just for Fees”
10:20 - Partner Selection and Built In Due Diligence via the CPA Lens
11:12 - Content Creation and 15+ Years of Experience at the Grindstone
12:18 - How Syndicators Should Choose a Real Estate Savvy CPA
14:24 - Biggest Career Challenges, Patience, and the KPMG / Grad School Grind
16:01 - 2025 Plans: Brandon Turner’s REI Summit and Renovation Timelines
17:04 - Where to Find James Online (Website, LinkedIn, Instagram)
Original Episode:
This conversation originally aired on Orange County Power Players.
Watch the original episode here: https://www.youtube.com/watch?v=v56kCA4-CUM
Full Transcript:
Intro and James’ Background as CPA + Developer (00:00)
Intro (00:00):
Welcome to Orange County Power Players, where we spotlight the personal, professional and financial success stories of Orange County’s top leaders. Here is your host, Danny Flores.
Danny (00:15):
Welcome back to OC Power Players, where I interview some of the most successful people in Orange County. I am Danny Flores, your host, and today’s honored guest is James Bohan.
Danny (00:27):
James Bohan is the CEO and founder of Stone Han Accountancy. With a truly unique outlook on personal and business finances and a contrarian perspective on taxation, his insights are guaranteed to deliver a thought-provoking discussion for us and our audience.
Danny (00:50):
With a diverse background in real estate, finance, Big Four institutional experience, family office investing, and entrepreneurship, James blends institutional quality with entrepreneurial creativity. Welcome, James.
James (01:19):
Yeah, that was a great introduction. Thank you for spelling all that out.
What James Does and How He Helps Clients (01:25)
Danny (01:25):
So tell us a little bit about what you do and how your perspective helps your clients.
James (01:34):
Yeah. I like to say my dad was a real estate developer and my mom was a CPA, and I decided to be both. I think real estate is one of the best ways to generate wealth in the most tax-efficient way possible.
James (01:40):
I was joking yesterday with a client that I am a dual citizen of Ireland and the United States. I was looking into ways to not pay taxes. There are very few ways as a U.S. citizen. Even if you move anywhere, the U.S. still taxes you. There are places like Puerto Rico and U.S. territories, but after analyzing everything, the best way to not pay tax is to be a real estate developer.
James (01:58):
Between depreciation and tax-free refinance proceeds, you can monetize your asset without taxable events. So I realized I did not need to expatriate. I just needed to be a real estate developer.
The Accounting Practice and Real Estate Strategy (02:24)
Danny (02:24):
Let’s take it step by step. Tell us what you do on the accounting side, then about the developments you work on.
James (02:53):
Sure. On the accounting side, it is run through Stone Han Accountancy. Our main specialty is tax strategy and tax savings. Ninety-nine percent of our clients are in real estate. Most of them run syndications or funds.
James (03:17):
For some clients I might be filing ten to twenty business returns plus their personal return. Having a CPA who understands the entire picture is incredibly important. You might have a cost seg happening on one property and a refi happening on another. Your CPA needs to see the entire puzzle to accurately plan tax liabilities.
James (03:31):
We also do bookkeeping because there is a huge industry problem with bad books. Cheap or inexperienced bookkeepers often do not reconcile property manager statements to QuickBooks or NetSuite. So we fix that. We do CFO consulting for a handful of clients too.
James’ Real Estate Investing and Development Strategy (03:56)
James (03:56):
On the real estate side, I am originally from Orange County. I was born in Newport Beach, but moved to Idaho about four or five years ago during the pandemic. My family and I started buying real estate here.
James (04:19):
Now I have partnered with a client of mine. Our strategy is what I call lease duration flexibility. Coeur d’Alene is a strong hospitality market. Some of our assets are pure hotels. Others blend workforce housing with short-term rentals.
James (04:42):
For example, we bought a 21-key hotel in Sandpoint. We are running it like workforce housing while stabilizing it. Six units will be short-term rentals. The rest are weekly or monthly rentals for local workforce tenants.
James (05:10):
We focus on creating attainable housing in resort markets like Coeur d’Alene, Sandpoint, and Lake Tahoe, where service workers cannot afford to live near their jobs. We take single-family homes or duplexes and convert them into micro-apartments. No shared spaces, no roommate fights about dishes. Just clean studios with kitchenettes and private entrances.
Increasing Yield by Renting by the Room (06:00)
Danny (06:00):
I imagine that increases yield significantly.
James (06:14):
Absolutely. We buy wholesale and sell retail. Buying one large property and renting by the room dramatically increases revenue. It also provides workforce housing in markets that desperately need it.
Deal Size and Operational Approach (06:32)
Danny (06:32):
These sound like smaller properties, not 100-unit buildings. Is that right?
James (06:43):
Yes. We are deploying capital $500,000 to $1 million at a time. Not $10 million institutional deals. It requires more operational overhead. My partner has a full GC team and property management team. For assets near me, my wife and I have been handling management.
James (06:58):
Coming from Big Four and private equity where I worked on $100 million loans and billion-dollar funds, I had to humble myself when I moved to Coeur d’Alene. The opportunity is in small assets here, and I honestly enjoy it much more.
Why Keeping It Small Works (07:45)
James (07:45):
With small deals, you can own more of the equity. As a fund manager, your ownership is often limited to the promote unless you invest heavily. Here, we control our own destiny.
Growing the Accounting Firm and Balancing Real Estate (08:01)
Danny (08:01):
How hard is it to grow the accounting practice? Do you want to expand into other industries?
James (08:25):
I want to keep both. The accounting firm is highly profitable and pays the bills. A CPA firm is a great business model. Clients stay for a long time. It also becomes the back-end engine for our real estate.
James (08:48):
Since I own the CPA firm, accounting is not a cost center. It is a profit center. And because the tax practice is seasonal, I grind until April 15, then shift focus to renovations and development.
James (09:06):
Most importantly, the CPA firm prevents misaligned incentives. Many syndicators feel pressure to do deals just to earn acquisition fees. I do not have to force a deal to keep the lights on.
Partnering Carefully Through Accounting Insight (09:33)
James (09:33):
Through the accounting firm, I meet many operators. I get to see their financials, how they run things. It is the best due-diligence filter possible.
James’ Unique Skill Set (11:12)
Danny (11:12):
What comes easy to you that might be challenging for others?
James (11:29):
My background. Fifteen years of accounting plus years of real estate means I have an endless library of experience to draw from. That is why I am creating more educational content. I can speak on almost any topic in the real estate and tax world.
How to Fix Bad Books as a Syndicator (12:12)
Danny (12:12):
If someone wants to clean up their books, where should they start?
James (12:18):
Reach out to your network. Make sure you hire a real estate specialist. We can help, but there are other good firms too.
James (12:30):
Correct classification matters tremendously. For example, part of a mortgage payment hits the P&L and part hits the balance sheet. Repairs lower NOI. Capital improvements increase basis. These choices directly impact valuations, refis, and sales.
James’ Biggest Career Challenge (14:12)
Danny (14:12):
What has been one of your biggest challenges?
James (14:24):
Patience. It takes years to build a reputation. Success leads to more success, but not overnight.
James (14:36):
One of the hardest times was when I was working at KPMG, finishing grad school, writing my thesis, onboarding a private equity fund, and still dealing with tax season. I barely slept. But it gave me confidence that I can handle anything.
What James Is Excited About in 2025 (16:01)
Danny (16:01):
We are heading into the second quarter of 2025. What exciting plans do you have for the rest of the year?
James (16:13):
I am going to Brandon Turner’s REI Summit in Austin. We are sponsoring it.
James (16:25):
I am excited to get renovations finished. We bought one property in March and the renovations should be done by the end of this month.
James (16:38):
The duplex tenants just moved out. Renovations should finish early June.
James (16:45):
I am excited to finally see rental revenue start flowing after months of renovation costs.
How to Contact James (17:04)
Danny (17:04):
If someone wants to get in touch with you, how can they reach you?
James (17:10):
My website is stonehand.com. That is stone like a rock and han like Han Solo.
I am active on LinkedIn at James Bohan CPA MRED.
My Instagram is JamesBohanCFO.
You can book a call on my website.
Danny (17:26):
Thank you so much for sharing, James.
James (17:29):
Absolutely, Danny.
