DIY Tax Return - Jumping into the deep end of the pool

[Lisa99]

Found first major mistake by the tax guy. Cost basis for one of the rental properties is off by $100k. Supposed to be $219k, was put in first year as $119k.

Good thing I just caught this. We're selling this year and with the wrong cost basis, we would pay a LOT of taxes not owed!


Now on to amended return for 2010, but at least it's just one year.

 

[RockyMtn]

Good luck, Lisa. I know it's weird, but I do enjoy doing my own taxes. I learn a lot from the process.

Have to agree with FIREd. Been doing my own taxes since day one....that would be when I was 14. With TurboTax these days it really is quite doable for anyone with some time and reasonable ability to follow directions. I have a rental property, consulting income, investment gains/losses, etc, etc. The products today make it much easier than it used to be.

When you consider that an accountant friend of mine said he would probably charge $2k to do my taxes I think it is worth the effort and time.....which I have plenty of!

Key is good records. Makes the whole process much easier.

 

[Sirka]

Calculating taxes

Not sure what you mean. In my spreadsheet, I programmed the tax calculation to match the taxes shown on those tax tables. Is that what you meant?

No, I am talking about software (like Taxact) calculating taxes to be lower, then what I would find in Fed Tax Tables. They say they have the IRS approval and I never had a problem (since 2009).

Taxable Income: $33,088
Calculated : $ 2,889
Tax Table: $4,111

It can be a big difference. Am I missing something?

I think I found it - it must be:
Qualified Dividends and Capital Gain Tax Worksheet

 

[Lisa99]

Ok, so I'm now stuck. Got all the rental properties in, no problem.

Working on K-1s and have passive carryover losses from prior years. The passive carryover question in TT says to put in the amt from box 1, but box one is only the loss for 2011.

Can't figure out where to put the accumulated previous year's losses. I've sent a question to the user community, I'll see what comes back.

I'm officially done for the weekend. Made very good progress and realized it really isn't that hard...until I got to the K-1.

 

[Finance Dave]

I"m in a similar situation as the OP...used to do my own but recently hired a pro since we started rentals. Also when trying to do mine on TT a couple years ago, there was a "glitch" in the TT software for our particular situation (IRA conversion to Roth), and after many hours of reading forums on this "known" issue, discovered TT was not inclined to fix it since it affected so few people.

I may go back someday, but for now I'll pay our pro. He doees ours for $315...including the business taxes.

 

[scrabbler1]

No, I am talking about software (like Taxact) calculating taxes to be lower, then what I would find in Fed Tax Tables. They say they have the IRS approval and I never had a problem (since 2009).

Taxable Income: $33,088
Calculated : $ 2,889
Tax Table: $4,111

It can be a big difference. Am I missing something?

I think I found it - it must be:
Qualified Dividends and Capital Gain Tax Worksheet

That probably is it. My spreadsheet includes the QD and cap gains worksheet so it calcualted the taxes due both ways and picks the lesser of the two as the worksheet does it.