Do you do your own business taxes?

[Sunshine]

Do you do your own taxes, and if so what resources or programs do you use? I have always done my own taxes and have some experience with doing some business in my home through work. But this is my first year for B&B and figuring those taxes!
Any good resources or ideas?

 

[gillumhouse]

No way. I have a person who is up-to-date on the tax laws that seem to change every year and who knows what I can deduct and what I cannot to MY best advantage. To me, tax software is too "cookie cutter" and I save more and stay out of trouble better by having someone who knows what they are doing take care of it. I do what I know how to do and let those other experts ply their trade - BTW, she went over 3 years of CPA done taxes for me and got me back and extra $200 + for each of those years which is why she has been doing my taxes for the last 9 or 10 years.

 

[swirt]

I do my own record keeping. Then I turn the numbers over to my cpa and she does the filing. It usually only costs around $130 and it is the best money we've ever spent.

 

[muirford]

I do my own, using Quickbooks and TaxCut, but I wouldn't recommend it for everyone. For me, if I am organized enough to take things to an accountant, I know enough then to do them myself. But, I have a father who's an accountant, I have a business degree, have been doing my own taxes since I started doing them, and have done taxes with more complicated situations than a Schedule C.
The fact that you can take your taxes to two different accountants and come up with a refund from one and not the other just indicates to me that an accountant is not any more all-knowing than I am. But, I am in the minority in this group for doing my taxes myself, I know.

 

[EmptyNest]

No way. I turn everything over to my CPA. That way I had someone to go to bat for me should there ever be an audit. And I could put the blame on someone else

 

[muirford]

No way. I turn everything over to my CPA. That way I had someone to go to bat for me should there ever be an audit. And I could put the blame on someone else.

It might be helpful to have someone to go to bat for you, but there's no escaping the blame if they're your taxes, your records and your signature. Sorry

 

[Copperhead]

I do my own taxes also, using Turbotax, Home & Business - I think! They have changed the name of this version over the last year or two. I found out just like Muriford that you can take your info to 2 different CPA's and they would come up with different figures. Most importantly, I think that they, generally speaking, do not understand the B&B industry! Turbotax is VERY user friendly and asks you questions all the way through the program. Since I have been using it for several years and store my previous years data electronicly (safely that is), when I load the new version and download my previous data, it will 'review' and use my old data as it can and learns from it what questions to ask. Well sort of, I know I am not explaining it correct, technologically speaking.
I also found that I was doing all the 'work' anyway. I provided them with all the figures, sending the background data too but hardly ever checked, then all they did year after year was put it down on the forms and charge me a big chunk.
Another thing that is mostly unknown is that a CPA is not accountable if you are audited and found to owe back taxes. And if they go with you to your audit, there is a charge. The only one's that are legally able to represent you are the ones listed as Registered Agents who can represent you at the audit without you attending. BUT just as Muirford said, you may point the finger at them but it is YOU that will pay if it was done wrong. Some CPA's as well as Turbotax, and the H&R Block software do stand behind their work (product) and for an additional cost will provide Audit protection which states that if you owe additional taxes, they will pay the fees associated NOT the TAX itself, this is still left for you to cough up. (For $30-35 Turbotax provides audit protection and a Registered Agent)

 

[EmptyNest]

No way. I turn everything over to my CPA. That way I had someone to go to bat for me should there ever be an audit. And I could put the blame on someone else.

It might be helpful to have someone to go to bat for you, but there's no escaping the blame if they're your taxes, your records and your signature. Sorry

.

Oh yes, that is true, But when we were audited in another life, our CPA went with us, made sure they knew the mistake was HIS and HE paid the penalties. I am sure not all people would do that...
In actuality...in this case, I actually got a refund back because we found other items to the good for us

 

[YellowSocks]

Yes.
TurboTax (although I used to use the other one...) and Quicken.
=)
Kk.

 

[Sunshine]

I started doing my taxes after I recieved notice that we owed a few thosand from my hubby pulling out early retirement funds. I knew we had already paid those penalties and went to H&R Blk and they refused to help us. So I pulled out our old tax info; got on line to the IRS site and read, read, read. Everything i could get my hands on. Then I redid my taxes for that year and discovered I 'did' make a mistake BUT it was in my favor and turned out IRS OWED us money. I sat down and wrote them a letter with copies of everything i did, and receipts and guess what?? I got a letter of appology and a check from them! Then the following year someone recommended a 'local' accountant and I used him, but he said we couldn't deduct my mileage from traveling to see clients or the losses from a fire we had! I endede up owing. That really bugged me because i had heard you could (and my co-workers deducted thieir mileage). So later, I called IRS and found out I COULD! Of course our taxes were already filed! So, again I read everything I could about taxes, and I filed an amended return MYSelf; and got a refund!
I have been reading everything I can about small business taxes and what is allowed and what is not and i have saved every single receipt for every single expense! I think I can do this... but.. if i get in over my head I definately will ask for help. I was just wondering if you all had favorite programs or systems that you like and use. I will check into the quick books, turbo tax, & tax cut.
Thanks for the input.

 

[JunieBJones (JBJ)]

I do all my homework and then hand everything over to our CPA to file the return. I sit there while he types in the figures right off my spreadsheets. I do this because owning/living in your own business makes you much more likely to be audited, having an accountant file the tax return is one less red flag.
We do not have anyone near here who knows anything about B&B's - so I often ask other innkeepers what their experience has been. I let the accountant know if anything he does or doesn't do looks wrong. But it goes in under his # and name which I prefer.

 

[gillumhouse]

I started doing my taxes after I recieved notice that we owed a few thosand from my hubby pulling out early retirement funds. I knew we had already paid those penalties and went to H&R Blk and they refused to help us. So I pulled out our old tax info; got on line to the IRS site and read, read, read. Everything i could get my hands on. Then I redid my taxes for that year and discovered I 'did' make a mistake BUT it was in my favor and turned out IRS OWED us money. I sat down and wrote them a letter with copies of everything i did, and receipts and guess what?? I got a letter of appology and a check from them! Then the following year someone recommended a 'local' accountant and I used him, but he said we couldn't deduct my mileage from traveling to see clients or the losses from a fire we had! I endede up owing. That really bugged me because i had heard you could (and my co-workers deducted thieir mileage). So later, I called IRS and found out I COULD! Of course our taxes were already filed! So, again I read everything I could about taxes, and I filed an amended return MYSelf; and got a refund!
I have been reading everything I can about small business taxes and what is allowed and what is not and i have saved every single receipt for every single expense! I think I can do this... but.. if i get in over my head I definately will ask for help. I was just wondering if you all had favorite programs or systems that you like and use. I will check into the quick books, turbo tax, & tax cut.
Thanks for the input..

I am very fortunate in that my tax person DOES understand business and B & B (she has heard enough about it from me) and also is VERY aware of my volunteer stuff AND DH's medicals. Because I was draining my 401k for medical expenses, I did not have to pay a penalty when I dipped into it until it was history - it took 10 years to do it. She does taxes for people with much more complications than mine. Using someone who knows you and what you do is important to me and I do think the fact I have someone else do them helps keep me out of trouble. Because she keeps up with the tax codes every year is important also. Some CPAs learn the code but do not keep up with changes AND as was pointed out in an entreprenuer seminar, will do a CYA saying this might raise a red flag and that may raise a red flag - we were advised to take the deduction until the red flag hits the top of the pole - it may take 10 years or never happen, and you had the deduction in the meantime.

 

[sandynn]

We get it all ready and send it to the tax man. We use a big company. When we went to the conference I was shock by how many people had been audited. I have not been and hope not to.

 

[Sanctuary]

I do my own personal taxes with Turbo Tax, but I give my business taxes to a CPA. My business is owned by a Delaware corporation, and for what little it costs for the CPA to do all the figuring on that, I let him do it and distribute the K forms to the partners.

 

[Morticia]

We use QuickBooks for all of our business accounting but we have a tax person do the actual business taxes.
Sorry, to say, but given you forgot to charge lodging tax, why do you think you can do business taxes + personal taxes? Are you incorporated? A sole proprietorship? How are you set up? You want to be sure you get this right the first time or the IRS will have your number (pun intended).

 

[egoodell]

We have a CPA with experience with B&Bs do our taxes for both the B&B and wine tours.
Would not do it any other way.
We have a receipt for every expense we claim
Riki