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.