Recommended Tax filing services in Raleigh North Carolina?

[Keith N.]

Hi All,

I'm sure this question has been answered 1,000 times on BP, but can anyone give me advice on what I should do in regard to filing my 2015 taxes.  Previously I had used Turbotax and done them myself, but this year I purchased and renovated a duplex which I am "house-hacking."

I just want to make sure I file all my taxes correctly and get all the money back that I can.  Would going to an H&R Block be sufficient?  Should I hire a CPA? A certified Tax Preparer?

I know my situation (owning rental property is very common but I want to make sure I do everything right.

[Brandon Hall]

@Keith N. the answer to your question lies with answering two more questions: (1) how much do you know about taxation in relation to rental real estate; and (2) how much time are you willing to put into researching the tax code to ensure your return is compliant with the regs?

Unfortunately, TurboTax fails many real estate investors because the real estate investors simply don't know how to answer the questions in order to generate the following correct questions. The software is run based on algorithms, so answering one question incorrectly can lead you down an entirely wrong path.

That said, TurboTax can be great for small landlords who are willing to put the time in to learn about the tax code and ensure that the manner in which they are answering the questions will produce compliant returns. Many landlords are not willing to do this, as the tax code is complicated, hence the market for CPAs. 

I recommend you connect with a real estate savvy CPA and ask them what the best approach is. Avoid being upsold into expensive tax prep that you may not necessarily need. 

Assuming no other variables are at play (minus a W2 job), if you were to call me up, I'd probably give you high level information related to the rehab and how taxation works when you owner occupy a rental. I'd then likely have you prep your own returns and then review them at my hourly rate to ensure compliance prior to you e-filing through TurboTax. That method will allow you to have a CPA's eyes on it without necessarily forking out $400-600. 

Of course, a CPA preparing your returns may save you the additional cost of tax prep anyway as we are acutely aware of expense line items missing from your returns. 

To conclude - figure out how much time you are willing to put into your returns. If not a lot, seek out a CPA.

*Just noticed you asked about HR Block. I highly encourage you to avoid them. I've corrected many HR Block returns this year. Real estate is not their strong point.