How 2 prepare tax return (by Bonanza [NC]) Nov 29, 2021 11:41 AM|
How 2 prepare tax return (by Ray-N-Pa [PA]) Nov 29, 2021 12:20 PM
How 2 prepare tax return (by WMH [NC]) Nov 29, 2021 12:28 PM
How 2 prepare tax return (by myob [GA]) Nov 29, 2021 1:43 PM
How 2 prepare tax return (by don [PA]) Nov 29, 2021 1:56 PM
How 2 prepare tax return (by MC [PA]) Nov 29, 2021 2:00 PM
How 2 prepare tax return (by Robert J [CA]) Nov 29, 2021 2:44 PM
How 2 prepare tax return (by Homer [TX]) Nov 29, 2021 3:07 PM
How 2 prepare tax return (by Bonanza [NC]) Nov 29, 2021 3:17 PM
How 2 prepare tax return (by myob [GA]) Nov 29, 2021 3:24 PM
How 2 prepare tax return (by Bonanza [NC]) Nov 29, 2021 4:22 PM
How 2 prepare tax return (by Busy [WI]) Nov 29, 2021 4:35 PM
How 2 prepare tax return (by Jim in O C [CA]) Nov 29, 2021 5:33 PM
How 2 prepare tax return (by pmh [TX]) Nov 29, 2021 6:07 PM
How 2 prepare tax return (by 6x6 [TN]) Nov 29, 2021 7:34 PM
How 2 prepare tax return (by marv [IL]) Nov 30, 2021 8:43 AM
How 2 prepare tax return (by S i d [MO]) Nov 30, 2021 9:18 AM
How 2 prepare tax return (by PJU [MO]) Nov 30, 2021 10:29 AM
How 2 prepare tax return (by Bonanza [NC]) Nov 30, 2021 12:35 PM
How 2 prepare tax return (by myob [GA]) Nov 30, 2021 1:11 PM
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How 2 prepare tax return (by Bonanza [NC]) Posted on: Nov 29, 2021 11:41 AM
does anyone know of courses or classes that teach you how to properly fill out tax returns?
I don't want to be a CPA but I would like to be able to do my own taxes or better understand them. Right now the CPA does it and honestly it's a black box. I have no idea how the numbers I give him show up on the return.
How 2 prepare tax return (by Ray-N-Pa [PA]) Posted on: Nov 29, 2021 12:20 PM
Quick books does a nice job walking you through the process.
If you are looking for a low tech solution? SCORE . ORG has a cash flow template on its website --24.101.xxx.xxx
How 2 prepare tax return (by WMH [NC]) Posted on: Nov 29, 2021 12:28 PM
Tax laws change all the time, sometimes in subtle ways that don't make the news. CPAs stay up on these - that's their job. BUT even regular CPAs don't know all the Real Estate rules, I've found. So no way *I'm* going to know or understand them all. I'd rather pay for the expertise than mess with the IRS!
When we were looking for a new CPA I called around and asked how many had Real Estate investors as clients. Most said they had none or maybe one. I finally found one that specialized in this area in another state, which is fine.
Honestly why recreate the wheel? Just pay for the expertise. --50.82.xxx.xxx
How 2 prepare tax return (by myob [GA]) Posted on: Nov 29, 2021 1:43 PM
I get this 110%. you gotta know what your business is doing-- real time. If your only doing RE it's basic stuff.
You should have a tax book for 2022 and read the RE section so you can plan/preplan your business and purchases. Look over schedule E for the lines you will deal with each month. --99.103.xxx.xxx
How 2 prepare tax return (by don [PA]) Posted on: Nov 29, 2021 1:56 PM
You should pay to have a pro do your taxes----BUT, you should understand the tax code well enough to know how it affects your business. For example, do you "repair"something and take the full deduction, or replace it and amortize the expense over 10-20 years. --73.141.xxx.xxx
How 2 prepare tax return (by MC [PA]) Posted on: Nov 29, 2021 2:00 PM
Been doing mine for years. Took a tax course twice and had a Tax instructor walk me through it the first time. It is not even that bad. The hardest was claiming expenses on the closing sheet when I sold that year. Other than that not bad at all. Look at your figures and look line for line on your last return. --73.230.xxx.xx
How 2 prepare tax return (by Robert J [CA]) Posted on: Nov 29, 2021 2:44 PM
A long time ago I decided I need to learn how to do taxes as a real estate investor! Why? Because everyday decisions dealing with the purchase, sale or renting will affect your taxes. So knowing each tax consequence for doing something one way or another, can affect your bottom line by TENS OF THOUSANDS OF DOLLARS EACH YEAR!
Another thing, there are many Quack Accounts that do not know real estate tax code. I had a friend who sold his investment home. He never lived there and had purchased in an exchange from a duplex. He never paid any taxes on it. So when he sold it his account thought the house was a previous owner occupied property that converted into a rental. The taxes he paid was only $20,000. I had estimated his taxes (federal, state and affordable care act) plus the recapture was close to $235,000. Only a difference of $215,000. Four years later he got audited and had to pay the taxes, penalty and interest -- something like $300,000. He had retired and sold his business. But with a growing $300,000 tax bill, at 70, he had to go back to work to pay off his back taxes and have money to live... --47.155.xx.xxx
How 2 prepare tax return (by Homer [TX]) Posted on: Nov 29, 2021 3:07 PM
I am a big time DIY guy, but when it comes to taxes. I pay the grand to my CPA each year. Best money I spend each year is on this pro. --107.77.xxx.xx
How 2 prepare tax return (by Bonanza [NC]) Posted on: Nov 29, 2021 3:17 PM
I use quickbooks daily. I have a S-corp with employees and RE is the side gig. At some point in time I hope to retire from the day job and just do RE. I don't know that I would feel comfortable doing my own taxes until it was just the RE. The 1065 from the S corp is ugly looking. The Schedule E from the 1040 isn't that complicated. I am sure I can track depreciation after getting the values from the accountant.
I'd just like to take some classes on tax prep. Call it personal enrichment. --71.217.xxx.xx
How 2 prepare tax return (by myob [GA]) Posted on: Nov 29, 2021 3:24 PM
someone starting out in RE who reads this post could save their fortune if they read these posts now. There is 200 years in wisdom posted in this short text. --99.103.xxx.xxx
How 2 prepare tax return (by Bonanza [NC]) Posted on: Nov 29, 2021 4:22 PM
Over your life, taxes are your biggest expense. it pays to know what the tax rules are. I know just enough to get me in trouble so I am trying to learn more . . . . --71.217.xxx.xx
How 2 prepare tax return (by Busy [WI]) Posted on: Nov 29, 2021 4:35 PM
NOLO Publisher books. Get the landlord book and the small business book. Even if you are going to continue taking your taxes to a CPA or a tax preparer. The books are well -written, meant for laypersons, with lots of good examples.
Each year, an updated edition comes out in December, then any updates or clarifications that Congress or the IRS come out with after that get posted to the NOLO website. ( yes! Congress has a strong history of revising tax laws after the tax year is over! Senator from my state was able to stop some of that.) So, I read the newest version of the landlord book each year to help prepare taxes for the past year, and to plan for the next year. Every now and then I read the newest small business book, especially after major tax law changes. havenít found a better source of information for the layperson, other than taking the tax courses offered by the tax preparer services. If anyone knows of an, please, do tellÖ. . I do enter everything into Turbo tax after I prepared my Schedule E by hand, to appease m husband. I have found Turbo Tax to occasionally have an error or two, but my husband feels more comfortable if we run the stuff through TT. He has at leastlearned to look for patches to Turbo Tax if I disagree with their handling of something on the return. ( and he has yet to find my hand- prepared return to be in the wrong when my return and TT donít agree. But, it is a nice feeling of confidence for him when they do agree perfectly. Heís chicken-$&*# scared of the IRS, and wants no part of rentals to boot!)
As was said before, even if a person uses a CPA, the landlord needs to know quite a bit if they want to fully utilize deductions. And the time to get the knowledge is as soon as you can, and continue to update the knowledge, not just when one sits down with the CPA. --70.92.xxx.xxx
How 2 prepare tax return (by Jim in O C [CA]) Posted on: Nov 29, 2021 5:33 PM
I crunch and compress all the numbers and my very knowledgeable CPA does the returns. This keeps my tax prep cost down and they are done to the latest IRS codes. --67.169.xxx.xx
How 2 prepare tax return (by pmh [TX]) Posted on: Nov 29, 2021 6:07 PM
pay a professional to do returns. we have an enrolled agent who also owns properties so she is always on top of changes. small price to pay & is schedule e expense. I rent houses. I am not a tax person. I know my limitations....which my wife will remind me of...... --107.77.xxx.xxx
How 2 prepare tax return (by 6x6 [TN]) Posted on: Nov 29, 2021 7:34 PM
Books for a layperson are good. --73.120.xx.xxx
How 2 prepare tax return (by marv [IL]) Posted on: Nov 30, 2021 8:43 AM
A community college or online course would be the place to start. --67.184.xxx.xxx
How 2 prepare tax return (by S i d [MO]) Posted on: Nov 30, 2021 9:18 AM
Your best resource is last year's return. Pick a property. Find the document labeled "Schedule E" that has that property's address on it. Below the address, you should see a list that shows income and expenses. It will look something like this:
3. Rents received
4. Royalties received
At the bottom (line 20) is Total Expenses. Simply add up the column
Line 21 you SUBTRACT the total in Line 20 from the Sum of 3 + 4. That's your profit or loss.
Now that's the simple part. Now you get to figure out your loss limits, adjusted gross income, etc.
It would be and "Ugh!" moment, but what makes it easy cheesy is software. Quicken and Turbo Tax offer packages that deal with rental property. They walk you thru step by step so you don't have to know anything other than, "How much did I get for rent last year....how much did I spend on insurance?" Simple stuff.
Where the CPA comes in handy is knowing about little tricks you can use to help get larger deductions and/or how to properly categorize some items. But again, you don't WANT to be a CPA. That's why we pay them to do the magic. Yes, it is somewhat black box, but if you practice going over a Schedule E like we did above for one property, you'll know 90% of what they're doing. The rest, you can spend an extra $50 to have a sit down for 30 minutes and ask questions.
I didn't become a real estate investor to become a tax expert. Knowing the basics is plenty, so you can check work and/or use the data on the forms to help analyze your business. I've used a CPA every year since the 2nd year in the biz. It's worth every penny. Find a local expert in real estate taxes to do you work, someone recommended by other successful investors.
Honestly, I give taxes about 3 hours of thought per year. They're a requirement, nothing more, so my goal is to get thru the requirement with minimal time and expense. Hiring a quality CPA and asking a few questions is about all I want or care to spend time on. I don't want to read a 500 page "Taxes for Dummies" book, of which 95% won't apply to me. Then have to read the supplements years to keep up to date.
How 2 prepare tax return (by PJU [MO]) Posted on: Nov 30, 2021 10:29 AM
In my area both the H&R Block company and Jackson Hewitt Tax hold courses on just about any aspect of tax information.
People who are going to work for them as preparers get significant discounts but they are generally open to the public. The courses can get as detailed as work on Estates and Trusts and, of course, business forms and real estate forms.
You may want to SKIP over the basic courses and just look for one on rental real estate.
Back in my late 20s I took several of those and even worked as a tax preparer for H&R Block after my regular 9-5 for a few years. That gave me the $$ to get my first rental property and I had an understanding of the tax laws by then. --136.34.xxx.xxx
How 2 prepare tax return (by Bonanza [NC]) Posted on: Nov 30, 2021 12:35 PM
good thoughts all. --71.217.xxx.xx
How 2 prepare tax return (by myob [GA]) Posted on: Nov 30, 2021 1:11 PM
Bonanza I beg to differ with your good thoughts. This again is where investors get side tracked into OTHER THINGS. You want CPA then yea study all, you want to know paint chips study paint chips-- it takes away from what you really want to do-- which is buy RE.
Taking course and college classes--nada - no.
Grab the 2022 Lassitier Tax book for 30.00 and get right to the RE chapters. Grab a tax return schedule E and read the lines. Merge them together in your mind. Your now ready for tax season 2022. Getting the book for 2021-- well it's to late already for that-- it's over. --99.103.xxx.xxx
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