Important Announcement
Top bars don’t need to be tiny you know. Check out this one.
Accounting and Finances
December 2, 2022

Real Estate Agent DIY Tax Return Preparers

Attention DIY Tax Return Preparers

I was reading the owner’s manual of a lawn mower I recently bought that got me thinking what it would be like to insert “tax return” in the space where “mower” appeared.

What if a tax return came with warning messages to help a DIY prepare their return? I’ve met real estate investors and realtors who have done well preparing their own return, but I’ve also come across a large number in my career who needed the help of a tax advisor.

Maybe you’ve flipped a lot of houses, prepared your own return and are super happy that the CAPITAL GAIN tax wasn’t so bad. Or maybe you talked yourself into a hefty auto expense deduction using 22,000 business miles covering your 1 RENTAL PROPERTY that is located a few streets over from your current residence. Clicking YES on the REAL ESTATE PROFESSIONAL question in Turbo Tax helped your $300,000 W2 full-time “day job” income to be reduced by your $30,000 of rental losses.

If you’re a DIY tax return preparer and see no problem with any of these scenarios mentioned, please consider having a tax advisor review your return. You may be experiencing a huge tax surprise soon if the IRS decides to audit your return.

Disclaimer: You probably won’t be killed or hurt as the Safety message says.

Happy tax planning!

Disclaimer: This blog is meant for informational purposes only and the reader should consult with their tax advisor to make sure the topic fits their financial situation.

Eric Shadowens is a CPA located in Louisville, Ky and the author of this blog. If you’d like to reach out to him about his services his contact info is below. 



Phone: 502-326-2319