Comments on: Outsourcing My Taxes – Is the Price of Expert Tax Advice Worth the Cost? http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/ Money Tips for a Better Life Fri, 25 May 2012 08:24:26 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Friday Finance Findings For March 7th http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/comment-page-1/#comment-199047 Friday Finance Findings For March 7th Fri, 06 Jan 2012 01:15:04 +0000 http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/#comment-199047 [...] Outsourcing Your Taxes – Is it Worth it? – This is a question I grappled with this year. With more side income and more tax liabilities, I seriously considered paying to have them prepared for me. But after doing them on my own, I found that it would cost me $100-$200 more, and in looking at any possible deductions, the most I’d expect to save is maybe equal to the cost. So, this year it was a wash. [...] [...] Outsourcing Your Taxes – Is it Worth it? – This is a question I grappled with this year. With more side income and more tax liabilities, I seriously considered paying to have them prepared for me. But after doing them on my own, I found that it would cost me $100-$200 more, and in looking at any possible deductions, the most I’d expect to save is maybe equal to the cost. So, this year it was a wash. [...]

]]> By: Brian C. Setzler, MBA, CPA http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/comment-page-1/#comment-108205 Brian C. Setzler, MBA, CPA Tue, 23 Sep 2008 04:36:59 +0000 http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/#comment-108205 CPAs aren't cheap but they should more than pay for themselves especially in the long run. While TurboTax may be inexpensive you have to spend hours buying the software, loading it, learning it and then inputing your information. As you enter data, you'll have to read about the law, determine if it applies to you and determine if TurboTax is handling things correctly. You then need to review your return and make any corrections to what you find. All of that can easily take you all day or longer. You should also note that errors can cost you dearly when penalties and interest are assessed. As a CPA, what I find most valuable with my clients is the occasional home run that they would have lost without professional advice. These types of savings can quickly add up to $10k, $20k and even $100k or more. They usually have to do with unique life events (births, deaths, marriages, divorces, starting a business, retirement, etc.) more than your routine transactions. I'm talking with a colleague of mine whose father hasn't done any estate planning and owns over $10 million in real estate. Were he to pass away today, they'd have to sell the land in the current down market to raise the $4 million in estate taxes that would be owed 9 months from the date of death. Is this stuff you are thinking about? If your return is simple (Wages and basic itemized deductions), then TurboTax will probably do the job. If you have anything more complicated, I really recommend a CPA who does your taxes AND, adds additional value beyond the tax return preparation. CPAs aren’t cheap but they should more than pay for themselves especially in the long run. While TurboTax may be inexpensive you have to spend hours buying the software, loading it, learning it and then inputing your information. As you enter data, you’ll have to read about the law, determine if it applies to you and determine if TurboTax is handling things correctly. You then need to review your return and make any corrections to what you find. All of that can easily take you all day or longer.

You should also note that errors can cost you dearly when penalties and interest are assessed.

As a CPA, what I find most valuable with my clients is the occasional home run that they would have lost without professional advice. These types of savings can quickly add up to $10k, $20k and even $100k or more. They usually have to do with unique life events (births, deaths, marriages, divorces, starting a business, retirement, etc.) more than your routine transactions.

I’m talking with a colleague of mine whose father hasn’t done any estate planning and owns over $10 million in real estate. Were he to pass away today, they’d have to sell the land in the current down market to raise the $4 million in estate taxes that would be owed 9 months from the date of death. Is this stuff you are thinking about?

If your return is simple (Wages and basic itemized deductions), then TurboTax will probably do the job. If you have anything more complicated, I really recommend a CPA who does your taxes AND, adds additional value beyond the tax return preparation.

]]> By: Early Retirement Extreme http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/comment-page-1/#comment-71086 Early Retirement Extreme Mon, 10 Mar 2008 18:46:42 +0000 http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/#comment-71086 I tried using turbotax but it didn't fly - I was using as much time punching numbers in and trying to get it to accept some more complicated stock trades and making sure it was done right compared to just doing the schedules with a pencil and calculator. I have thought about getting an account (a faculty member at my old university volunteered so that just cost me $100 at a time), but the question is -- who do you trust? I tried using turbotax but it didn’t fly – I was using as much time punching numbers in and trying to get it to accept some more complicated stock trades and making sure it was done right compared to just doing the schedules with a pencil and calculator.

I have thought about getting an account (a faculty member at my old university volunteered so that just cost me $100 at a time), but the question is — who do you trust?

]]> By: bill http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/comment-page-1/#comment-68911 bill Wed, 05 Mar 2008 00:43:00 +0000 http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/#comment-68911 I, too, use an accountant, but they don't come cheap. Mine is a CPA/Lawyer. I'm wondering if I were to get just a CPA if it would be cheaper. I, too, use an accountant, but they don’t come cheap. Mine is a CPA/Lawyer. I’m wondering if I were to get just a CPA if it would be cheaper.

]]> By: Fixemup Terry http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/comment-page-1/#comment-68894 Fixemup Terry Tue, 04 Mar 2008 17:40:59 +0000 http://moneysmartlife.com/outsourcing-my-taxes-is-the-price-of-expert-tax-advice-worth-the-cost/#comment-68894 Good article! I agree with your rational for using an accountant for taxes. As a real estate investor, an added benefit to having an accountant is that throughout the year I can call him on the phone and ask him questions about how different investment actions will affect taxes. His useful advice on many areas of investing are hard to put a value on. Its always good to have someone with a well rounded perspective on my business to consult with. Good article!

I agree with your rational for using an accountant for taxes.

As a real estate investor, an added benefit to having an accountant is that throughout the year I can call him on the phone and ask him questions about how different investment actions will affect taxes. His useful advice on many areas of investing are hard to put a value on.

Its always good to have someone with a well rounded perspective on my business to consult with.

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