I have one property (duplex) - do I need accounting software?

[John Doyle]

We have had our duplex for one year now, and aren't looking to acquire any more properties.

Maybe this is a dumb question, but do I need accounting software (Quickbooks, etc.) or can I just do our taxes with Turbo Tax Premiere (Investments and Rental Property) and call it good?

I keep good records of everything I spend on the property, every dime in and out. I don't care about calculating ROI or doing any property management functions.

Thanks!  

[Christian Carson]

If all you have is a W-2 and one rental property, there's probably no reason to get a tax preparer, but if you're like me and you managed to create a 75 page tax return from a week's work of fighting with TurboTax, then you've probably come to the point where you need to hire help. 

Be aware that TurboTax and the other services sometimes just get it plain wrong. I submitted a return one year and was pretty surprised to get a notice of penalty from the IRS about a week later because the program had failed to file a necessary form regarding quarterly payments. A full-time tax preparer would have instantly recognized that this form would have been needed.

As the complexity of your business increases, so does the risk of audit. Hiring a tax preparer that knows how the IRS likes to see things reported will reduce your audit risk by quite a bit. Some expense line items and some forms will increase your chance of getting flagged if you don't know how they work internally. I don't mess around with the IRS.

FWIW, I use both Rentecdirect and Wave for my accounting of rentals. I like Wave because I can shuffle journal entries from personal to my various businesses with a few clicks, so I can assure that everything is filed in the right place.