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Updated about 5 years ago on . Most recent reply presented by

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Ben Kirchner
  • Durham, NC
42
Votes |
124
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Use TurboTax or hire CPA?

Ben Kirchner
  • Durham, NC
Posted

I've always used TurboTax for my taxes. Been acquiring rental properties over the last 3 years and still get by with TurboTax. The time commitment is not an issue with me, but I certainly would be open for hiring a professional if the expense was worth what I would get in a return. I keep good records of all expenses/income from my rental properties, and it seems like Turbo Tax walks you through where to enter all the data, and generates your return from that. I'd like to get opinions here on tax deductions and elections that I could be missing by using Turbo Tax, get an idea on the cost/benefit of hiring a professional, and decide if the cost would be justified in the additional return I would be receiving. 

Also, my next audiobook will be the BiggerPockets tax strategies book. Curious to hear from people who have read it and how eye opening it was as far as deductions they learned about that they never knew about previously. 

Thanks for all insights.

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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
1,764
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1,982
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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
Replied

From personal experience reviewing prospect tax returns that previously DIYed, it's not what they're missing...it's what they're doing.

Claiming RE pro and taking rental losses as non-passive even though they have a full-time W-2 job.

Flushing a major renovation through as "repairs".

Reporting "landlord overhead" expenses on Sch C and taking them against earned income.

Depreciating STRs over 27.5 years and taking active participation loss allowance on them.

Etc.

"It Ain’t What You Don’t Know That Gets You Into Trouble. It’s What You Know for Sure That Just Ain’t So."

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