Should I do my own taxes

[Nate Denning]

I own 1 rental property and was wondering if I need to go the cpa route. I have been doin my own taxes through turbo tax but this will be my first year with a rental. I bought the turbo tax for investment properties but have yet to open it since if I do I can't return it. .

[Linda Weygant]

Here are some topics to consider.  If you know the answers to these right off (or can find them easily), then you may be a good candidate for doing your own taxes.  If not, you may want to consider using a CPA.

1.  Do you know the difference between a Repair and a Capital Improvement?

2.  If you do know the difference, do you know when the De Minimus rules come into play?  If so, how do I declare that I am operating under the De Minimus rules?

3.  Can you quickly and easily calculate the basis of your property by looking through your closing statement?

4.  Also on the closing statement, can you pick out the items that are deductible this year vs what should be included in the basis?

5.  How much should I allocate to land?

6.  Tools - where and how to write them off?

7.  How/where do I write off my Bigger Pockets Professional Membership?

8.  How/where do I write off the interest I paid on my Subject To deal?

9.  What does In Service Date mean and why is it important?

10.  Is my flip deal subject to self employment income or is it a capital gain (the answer to this is "It Depends" - don't get caught in a trap).

11.  Seller Financing - what are the tax benefits and pitfalls to both the seller and the buyer.  What do I need to be aware of as I go through my tax return? 

12.  If you messed up your depreciation in prior years, can you correct it?  If so, how?

13.  Home Office?  Mileage?  What are the rules?

14.  Am I a real estate professional?  Why would I want to be one?

15.  I was going to flip this house, but I rented it instead.  Why is that important?

16.  I was going to rent this house, but I flipped it instead.  Why is that important?

17.  Do I really have to pay all this self employment tax?  How can I reduce this?

18.  Partnering, Joint Venturing, Borrowing Money.  What's the difference and how do I report these on my taxes.

19.  Why is TurboTax asking me all these questions?  Can I just blow through them?  What is TurboTax doing with all these answers?

and lastly...

20.  I did my own taxes for the last several years and I'm pretty sure I messed something up.  How do I fix this and who do I call (not Ghostbusters...)

I remember a shopping plaza I drove through once where there was a bargain hair cutting place and a high end salon.  The bargain place had a sign out front that said "$8 Haircuts!!!"  The other place had a sign out front that said "We Fix $8 Haircuts"