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Old 01-30-2019, 08:18 PM
 
Location: Madison, Alabama
3,484 posts, read 1,642,958 times
Reputation: 2707

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I haven't filed yet because I still don't have all my W-2a and 1099s. Supposedly they have until Feb 1 to get them to taxpayers, but the government shutdown might have impacted mailings (from government sources, not the US Mail).

I use TurboTax so it should only take an hour or two to complete once I get all the info.
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Old 01-30-2019, 08:26 PM
 
18,719 posts, read 13,492,794 times
Reputation: 14107
Quote:
Originally Posted by luckyram View Post
Wait....I already agreed with you that your situation (as well as others with businesses/rental properties, etc.) opens up various potential avenues for tax advantages. But what I was saying was not everyone has the wherewithal to go that route - I was pointing out the majority of middle to upper middle class filers are dual working, single homeowners with a couple of kids and either don't have the option, time or finances to start a business or create one for tax mitigating purposes (or otherwise).

If it's working for you, fine....but we're talking apples and oranges here. Most here are looking for ways to lower their tax liability while being "regular" 9-5 people.
Let’s not forget to mention spending money you didn’t need to in order to create a business expenses isn’t saving money
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Old 01-31-2019, 12:07 AM
Status: "Excited to move to Vegas!" (set 4 days ago)
 
Location: Beaverton, OR
5,380 posts, read 5,825,119 times
Reputation: 6001
Not as such. I finish the company accounting for my business by early January, then deal with the 1099 forms that have to be sent out to everyone, and the 1096 to the government, so I'm basically as far as I'm concerned done with my accounting / tax stuff for last year. But in reality I'll have to turn over my books, digitally speaking, to my accountant and he does the actual tax part of the work. My tax documents every year are fairly massive because of investment holdings in many states, I think for last year WA, OR, CA, NV, and TX, though fortunately as far as state returns are concerned, no income taxes in 3 of those 5 states, but their books still have to be completed and my portion of the income calculated.

I expect to have very little if any taxes due as I have a massive disallowed loss to offset any future gains for the next 4-5 years I expect. There may be some taxes on my business but we pay in advance based on expected taxes so usually I've just rolled over the tax refunds to the next year, for safety.
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Old 01-31-2019, 06:59 AM
 
7,350 posts, read 4,182,782 times
Reputation: 5009
Quote:
Originally Posted by redguard57 View Post
Everyone I know who lives in New Jersey or California is crying on their facebook about paying a significantly more than last year because of the changes to the property tax deduction.

The tax plan was horribly punitive to certain people.
Exactly. In previous years, I could write off a good chunk of my income as mortgage interest and taxes. Not this year.
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Old 01-31-2019, 07:01 AM
 
7,350 posts, read 4,182,782 times
Reputation: 5009
Quote:
Originally Posted by tgbwc View Post
Yes. Guess weíll have to have additional funds withheld this year.
I am planning to send more to my 401k also.
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Old 01-31-2019, 07:22 AM
 
1,599 posts, read 522,923 times
Reputation: 3393
Taxes yet? No. I won't get K1 forms for at least another month.
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Old 01-31-2019, 08:33 AM
 
1,131 posts, read 512,214 times
Reputation: 1205
Quote:
Originally Posted by Tencent View Post
No...

He has been doing my taxes for 10 years.

And for the record my S-Corp is REAL...I have side clients. Why do people automatically assume it's fraudulent?

Get it through your heads...There are perfectly LEGITIMATE ways to reduce your tax obligation. Turbo Tax won't enable you to find those ways.
Why are you getting defensive, it was a simple question that you should have answered already the way youíre touting your preparer's aggressive approach.

Thereís an old saying, everything is legal until you get audited.

Quote:
Originally Posted by Tencent View Post
Reporting 20k loss on a 200k gross will not raise red flags. This is all according to IRS guidelines.
The Hobby Loss Rules of Section 183 would suggest otherwise. Spending $20k to save $5 - $7k of taxes doesnít seem like a viable long-term wealth building strategy.

Quote:
Originally Posted by Tencent View Post
People the strategic aspect of this is not rocket science. Anybody can do this. Get a good CPA and follow his instructions. I am not talking about Bob the accountant on Dunedin Drive whose office looks like it hasn't been updated since 1979. I mean Mike who graduated from Baruch in 00' and has almost 20 years experience and earned his stripes at Ernest and Young.
While helpful, having a Big 4 background like Ernst & Young does not automatically mean that the individual is infallible. Iíve done due diligence on companies who had Big 4 firms, as well as the largest national and regional firms, doing their work. They all made mistakes. Iíve seen tax professionals take positions that I and other tax professionals (lawyers and CPAs) considered outright fraud but they were adamant it was acceptable. I have a Big 4 background and Iíve made my share of mistakes. One particular issue I wound up being wrong about was even audited by the IRS and not picked up, wasnít until another firm was doing some work with us that it was discovered.

Like you said, there are bad Pros that donít allow you to deduct something you are allowed, but there also bad Pros that do allow you to deduct things that you arenít allowed.

Iím glad youíre happy with your tax preparer and can attest to the value of using a professional, but please understand it is not for everyone.
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Old 01-31-2019, 09:53 AM
 
8,682 posts, read 5,056,652 times
Reputation: 9782
Quote:
Originally Posted by Tencent View Post
No...

He has been doing my taxes for 10 years.

And for the record my S-Corp is REAL...I have side clients. Why do people automatically assume it's fraudulent?

Get it through your heads...There are perfectly LEGITIMATE ways to reduce your tax obligation. Turbo Tax won't enable you to find those ways.
Sure. And it makes sense to pay for that expertise if you do things like own an S-Corp. But, most people don't own an S-Corp. Most people have a job, a mortgage, a family, some investments, maybe a rental house or two.

People are assuming it's fraudulent because earlier you stated that everyone should own an S-Corp for tax reasons.
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Old 01-31-2019, 10:18 AM
 
Location: Maryland
18,614 posts, read 16,380,336 times
Reputation: 6343
Kind of cool that they've streamlined the 1040 forms and the 1040 is just one page.
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Old 01-31-2019, 11:07 AM
 
Location: Denver, CO
1,662 posts, read 4,042,733 times
Reputation: 1215
Quote:
Originally Posted by EdwardA View Post
Kind of cool that they've streamlined the 1040 forms and the 1040 is just one page.

What was it before, 2 pages? I haven't done paper 1040 in forever so I wouldn't know. Most of my time is spent in all the different schedules anyway.
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