CPA or Tax Software? - TurboTax, H&R Block, etc.

Tax, SDIRAs & Cost Segregation
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CPA or Tax Software? - TurboTax, H&R Block, etc.

Robert Leonard
Rental Property Investor · Greater Boston Area · Member since 2018 · 258 posts · 105 votes

What has been your experience hiring a CPA vs. using the top-tier tax software from the likes of TurboTax and H&R Block? 

Robert Leonard

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Adam Rasmussen
Accountant · Vancouver, WA · Member since 2019 · 100 posts · 71 votes
6y

As a CPA our favorite new clients are those who used HR Block or Turbo Tax to prepare their prior returns because that means we typically can find something wrong and pay for ourselves right the bat! We amend a good amount of those returns for missed deductions. 


When you find a CPA and they aren't paying for themselves then you should find a new one. 

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  • Adam Rasmussen
    Accountant · Vancouver, WA · Member since 2019 · 100 posts · 71 votes
    6y

    As a CPA our favorite new clients are those who used HR Block or Turbo Tax to prepare their prior returns because that means we typically can find something wrong and pay for ourselves right the bat! We amend a good amount of those returns for missed deductions. 


    When you find a CPA and they aren't paying for themselves then you should find a new one. 

    4Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    6y

    @Robert Leonard

    Turbo-Tax(the software) is good if you have a very simple return like just having a W-2 and maybe some interest income/dividend income.

    Getting your tax return done at H&R Block can be a little scary. 
    Some people preparing returns at H&R Block had a quick training before they are asked to prepare returns.

    I will be biased since I am a CPA. I think once your return is a little bit more complicated(owning real estate, having your own business, retirement account planning, etc) you should consult a CPA.
    You also want to make sure the CPA is qualified and specializes in the area of your tax profile.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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    1Reply
  • Michael PlaksPro Member
    Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
    6y
    Originally posted by @Robert Leonard:

    What has been your experience hiring a CPA vs. using the top-tier tax software from the likes of TurboTax and H&R Block? 

    It's as "top-tier" as Walmart. :)

    This software asks you a bunch of questions, and it does so in the tax lingo, without bothering to explain or clarify. If you happen to interpret all the questions correctly and provide accurate answers, then the software will crunch your numbers and produce an accurate tax return. 

    With real estate, the chances of that happening are pretty slim, based on the thousands of self-prepared tax returns that I have seen. 

    However, how significant are those errors for your bottom line is another question. You might make errors that result in a $100 error, which is less than the cost of hiring a professional. But what if you make a $5,000 error? How would you know?

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  • Zack Leverette
    Rental Property Investor · Macon, GA · Member since 2018 · 15 posts · 8 votes
    6y

    ^^^ I agree with these guys. It is well worth the extra money to make sure your getting all the proper deductions. I also advise set up a meeting with the CPA and make sure they are comfortable with doing taxes for real estate investors.

    2Reply
  • Steven Hamilton IIPro Member
    Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    6y

    I love TurboTax I get a ton of audit representation work because of it. I find we typically have 25-50 open cases we're representing that self prepared. 

    [email protected]224-381-2660
    4Reply
  • Robert Leonard
    OP
    Rental Property Investor · Greater Boston Area · Member since 2018 · 258 posts · 105 votes
    6y

    Thanks, everyone. I appreciate the input.

    Robert Leonard

    0Reply
  • Dave Chow
    Investor · CA · Member since 2017 · 91 posts · 16 votes
    6y

    We have using TurboTax in the past several years without issues.  Make sure you have all the documents well saved and organized. The software also has different packages with one being suitable for Rental investors. 

    1Reply
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