User friendly tax software
I'm attempting to do my taxes and they are a little more complicated this year, as I house hacked and rehabbed my first house, while living in it. I was thinking of using Turbo Tax or HR Block's software. I've also heard Credit Karma has a new free tax feature and was curious if anyone has tried that out, and if it would be user friendly for my situation. Can I get some good recommendations please? I'm pretty good at figuring things out, but I'm not a tax expert, so the ideal software would have to ask the right questions..
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The problem with doing your own taxes with a tax preparation package such as TurboTax is that you really need to have a good idea of what you are doing, what is allowed, etc. The on board help is good but there are some situations where TurboTax depends upon you to find your own way through the maze with no assistance from the Help module (Form 1116, for example).
Why not get professional assistance for the first couple of years, and, at the same time do your own taxes with DIY tax preparation software. Compare your DIY return to the professionally prepared return and learn what you don't know about doing your own taxes. At some point in time, you may feel confident enough to rely on the DIY tax prep packages.
I fix a lot of Turbo Tax Returns. What you don't know does hurt you. My advice is to hire someone to advise you. You can very easily mess this situation up. I get a lot of audit work from TT users who did their return incorrectly, most of them end up owing thousands. The term penny wise, pound foolish comes to mind. I'm more than happy to help you find someone you can work with.
You definitely need someone qualified, does not have to be a CPA, could be an Enrolled Agent or an attorney. Just make sure they specialize in tax and have significant experience dealing with real estate investors.
Here is a great list of questions to ask a potential accountant: http://www.biggerpockets.com/forums/51/topics/7044...
Also check out the www.NAEA.org page in your search. It should help you find someone local. If someone comes to me, I'll send them your way.
If you need help in your search or want to verify something don't hesitate to ask.
For example: I have clients worldwide and things are just as easy as I e-mail them, talking on the phone. I even use Skype and TeamViewer to communicate with clients so I'd highly recommend looking for one of the best with great references that interviews well with you.
So look for someone you can connect with that works out for your situation.
Feel free to ask here if you have questions
@Alec Anderson From what I hear, TT does ask a lot of questions. Just make sure to tread with caution when answering the questions - particularly when establishing the cost basis for your property for depreciation purposes. Its even a bit trickier when house hacking. Doable. But tricky.
- Daniel Hyman
The problem with doing your own taxes with a tax preparation package such as TurboTax is that you really need to have a good idea of what you are doing, what is allowed, etc. The on board help is good but there are some situations where TurboTax depends upon you to find your own way through the maze with no assistance from the Help module (Form 1116, for example).
Why not get professional assistance for the first couple of years, and, at the same time do your own taxes with DIY tax preparation software. Compare your DIY return to the professionally prepared return and learn what you don't know about doing your own taxes. At some point in time, you may feel confident enough to rely on the DIY tax prep packages.