Turbo Tax Deluxe or CPA?

Question

I have always had an easy time with Turbo Tax  This past year, I bought my first rental and now it is TAX TIME!!!  I'm wondering if I should use a cpa or continue with Turbo Tax Deluxe?  The questions are very straight forward with Turbo Tax and it is much cheaper.  But I also don't want to miss out on maximizing my return.  What are other landlords out there using?

Jake Hottenrott · Answer

@Jean-Marie Poth - Do you fix your own car or take it to a mechanic?  Do you write your own contracts or have a lawyer prepare them?  Do you use Web MD as your end all be all when you have a health issue or do you go and see a doctor?  It's just my two cents worth (and I'm biased as a CPA) but let a professional do their job and you should see a result over time that makes their cost well worth it.

Account Closed - Remember, speed does not equal the best result.

Thanks and I hope that helps!!  Best of luck!

Account Closed · Answer

Agreed you can't replace expertise.  You should always seek advice.

I consulted with CPA already I know what I can deduct or not deduct. I set up my quickbooks based on that.

After that I do it myself and it is so much faster. If my situation change I consult again.

The end of the year i enter it on turbo tax. It only took me minutes.

Turbo tax also transfer my previous file and calculate my depreciation automatically.

I love turbo tax.  If you ask me. I choose turbo tax every time.

but this is not for everybody.

Christine Mwai · Answer

It's not complex at all with just a few rentals. Been doing it for years, and even on a gas station business that is way more complex than rental properties. Do what you are comfortable with.CPAs are great though. Do this, Use premier Turbo tax, but don't file or pay at the end. Then, go to a CPA and give them the same info you used. See if there are significant differences in your taxes  owed or refund.That will tell you if Turbo tax is for you or not. Best wishes.

Account Closed · Answer

I use Turbo tax

I do keep the CPA for consultation purposes only.

Technology is so advanced now. The amount of time I gather my stuff send it to CPA, explaining to them the charges, etc. and waiting for them to complete. I can do it myself much faster.

Turbo tax also have tax expert that you can call. I spoke with them a few times and they really good. I fill out the contact form and wait until they call me. They usually call within hours.

David Zheng · Answer

2015, I was just doing a w-2 and used turbo taxthroughout 2016, I picked up 7 rentals including portfolio loans, regular investment loans, a 5% loan, 110k rehab, and an HML. Took me a couple days, but I used turbo tax deluxe only and seemed to get out of it ok. Still waiting on the return to actually see if all is well though...

Christopher Cousin · Answer

@Jean-Marie Poth The true value that a CPA provides definitely rests in tax planning. Plugging numbers into software is an easy process, but tax planning requires expertise. For example, a qualified CPA can help you to structure transactions to maximize your tax savings down the road or provide advice as far as which entity provides the most tax advantages should you decide to use an entity.  I'd also recommend that you check out the Mark Kohler podcast for additional tax/legal related information as it applies to real estate.  I wish you the best.

Dave Toelkes · Answer

@Jean-Marie Poth

If you are intent on using TurboTax, then consider either the Premier or Home and business version.  The Deluxe does not have the extensive help and guided interview modules that you will find in Premier and higher versions.  Premier is a little more expensive than Deluxe, but the guided interview is worth the added cost.

I agree with the others that suggest you consult a CPA, at least for the first year or two.  Then use the CPA's prepared tax return, depreciation schedules, and worksheets as guides for your TurboTax return the next year.  when you prepare the same rturn that the CPA prepares for you, then you  might think about just doing your own tax return the next year and just use the CPA for strategic and tax planning.

Turbo Tax Deluxe or CPA?

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