IRS Form 8824 Review

[David V.]

Hello Tax pros,

I am planning on executing a 1031 Exchange (simple one - no boot, same owner, etc.) using IPX 1031 sometime over next couple of months  (already had call with IPX) and had a question relating to my taxes on the potential upcoming transaction.  I have been doing my own taxes my whole life (56 now) and have 5 rentals (don't want anymore) so i feel comfortable about 95% of the time when filling them out.  I reviewed Form 8824 and after much research I generally feel comfortable completing the form as well as how to depreciate the carryover basis and additional (or excess) basis using either of the two allowable methods (general and simplified methods).  However, I would like to know if I could pay someone to review my worksheets I create to complete the form and the depreciation calculations as well.  Not looking to hand off my taxes but rather a consultation to review this piece when the time comes.  I suspect when the time comes for a tax pro this would be an easy task.  Regards.  Dave

[Account Closed]

Hey Dave, 

I have not found it common among the accounting firm owners I know to take on clients who just need one-off review on part of the tax return. I would suggest if you are in need of help here to just have an accountant look over your entire tax situation and do it for you. At 5 rental properties, you can more then afford it and it will save you time and headache, and even better could save you a lot more money! 

[Joshua Thompson]

Hi Dave,

I agree with Zachary above that it is fairly uncommon for an experienced tax professional to review only a certain portion or even an entire return someone has self-prepared. The issues is time reviewing everything, we'll need all your documents and if we see a number wrong we can't go into the tax software to see what went wrong, it would be a lot of back and forth. Most cases it would take more time to review these than actually doing it ourselves especially if we are being thorough. If you insist on having someone review it, I believe TurboTax has an ask-accountant feature but I doubt they have extensive real estate knowledge.

[Jason Malabute]

Hi Dave,

I understand why you’d want to handle your own taxes, whether it’s a personal preference or just comfort with your finances. However, as others have mentioned, it’s not common for tax professionals to review just one form, like the 8824, without seeing your entire tax situation.

1031 exchanges can get complicated, and reviewing only part of the process might lead to errors or missed details. That’s why most professionals would need to look at everything, not just one part, to give you the best advice and ensure no mistakes are made.

Hiring a professional might cost more upfront, but it’s worth it for the peace of mind and to avoid potential tax issues down the road.

Best regards,

Jason

[Ámlèh Quáwáin]

Quote from @David V.:

Hello Tax pros,

I am planning on executing a 1031 Exchange (simple one - no boot, same owner, etc.) using IPX 1031 sometime over next couple of months  (already had call with IPX) and had a question relating to my taxes on the potential upcoming transaction.  I have been doing my own taxes my whole life (56 now) and have 5 rentals (don't want anymore) so i feel comfortable about 95% of the time when filling them out.  I reviewed Form 8824 and after much research I generally feel comfortable completing the form as well as how to depreciate the carryover basis and additional (or excess) basis using either of the two allowable methods (general and simplified methods).  However, I would like to know if I could pay someone to review my worksheets I create to complete the form and the depreciation calculations as well.  Not looking to hand off my taxes but rather a consultation to review this piece when the time comes.  I suspect when the time comes for a tax pro this would be an easy task.  Regards.  Dave

I could take a look, just send me a quick summary along with the worksheet