Plan B Forum

I've been using Turbotax for a long time and I've had no problems - of course I've never been audited either - but I believe it has been accurate.

Soon I will be selling a rental property. I've never done that before. I was planning on using Turbotax again to file but I'd like opinions from people as to whether or not they think it is a good idea.

What would a tax professional do that Turbotax can't do? Their website says its software can handle a home sale or rental property sale. You can even pay a small fee to have someone help you deal with an auditor if needed.

Does anybody have thoughts or ideas on the subject? Is it better to use a human? Why? Has anyone who has used Turbotax had a bad experience? A good experience? I'm sure professional tax preparation people use software to do their job but it must be much more sophisticated than Turbotax. Does that matter?

Whattaya think?

I’ve used TaxAct, TurboTax and before that (when I was poor enough) a free software program provided by legal aid.

Unless your taxes are very complicated, I don’t see why you can’t use TurboTax again - I used it last year to file and had to account for the sale of my house in Montana and I found it uncomplicated. I believe they provide representation for an audit if you end up audited as part of the software package - if it’s an add-on, I’d take that option and go for it.

eta: This is not to be construed as legal advice, as I have no expertise in tax law and my license is inactive in any case.

In 2014 I had to file for three different states - KY, IN and MO. Turbotax assured me it could handle it but I ended up at HRB. It had me going around in circles. I had previously used it for 3 or 4 years, no problems.

The main tax issues of the sale are figuring net sales price, recapture of depreciation and capital gains. Any competent tax software should be able to perform the computations, but the software is only as good as the information it is supplied. If you think you have solid records and know the items to include, then the software should be fine. If you think you could use some help figuring out old records and all of the items to include, then it probably makes more sense to hire someone who comes well recommended. If you have a large capital gains, you might also want some tax advice on ways to reduce/avoid those taxes.

65 + Median SS = NoBoTax.

I dare you to come after Carolyn Colvin, you know where I live.

Pretty much what Long Run said. Plus, assuming you use the web version of TurboTax, you don't pay until the end, when you want to file. So go through the process, answer their questions, and see how you feel about whether or not you were directed in a way that makes you feel comfortable. If you are, pay the money and file your taxes. If not, hire a local professional.

I would not pay the extra for audit, because then you end up with whoever you end up with, and you have no choice, and no idea what their experience or qualifications are. If you have a problem, then you hire a local professional at that time.

Skip HRB - The one time I used them, I did more work and asked more questions than the tax preparer. Then, the tax preparer filled out my forms incorrectly and the IRS sent them back. I ended up getting my money back.

For many years my younger brother worked at the IRS paperwork processing center in Kansas City Missouri. His group was the second level of paper shufflers. He told me that Turbo Tax worked the tax regs better than most IRS agents. He also said if your return was done by Liberty, it was almost an automatic audit. That info is now three years out of date because he has retired. At the time he left, manpower had been reduced to the point that audits and corrections were only for the very obvious stuff.

H&R Block is very iffy. The experience, skills, knowledge can vary from one week training with the only qualification required is that your check for the franchise does not bounce, to years of professional experience as a tax examiner. The big advantage over Turbotax is that you have a human being to talk to.

snailgate

Thanks to all for your thoughts and advice. I've kept good records, so unless someone else here finds a way to scare me away from it, I'll continue to use Turbotax. I do file online and Turbotax can access my past tax info for some of the info needed, although I do have hard copies.

Even a human tax man could mess it up, so if I use Turbotax, the only human I have to worry about is myself. Regarding minimizing capital gains taxes, I have researched the options and there aren't many unless I want to buy another rental property.

Thanks to each of you for your input. It really helps and I appreciate it.

Joe Guy wrote:I've been using Turbotax for a long time and I've had no problems - of course I've never been audited either - but I believe it has been accurate.

You're just trying to wind up Quaddy now, aren't you?

When we had two incomes in two different states I started using a CPA. I also do a hand calculation and they generally are close. But the AMT complicates things enough that I am happy to support my local Tax Professional.


yrs,
rubato

Gob wrote:

Joe Guy wrote:I've been using Turbotax for a long time and I've had no problems - of course I've never been audited either - but I believe it has been accurate.

You're just trying to wind up Quaddy now, aren't you?

Oh no! Now quad is going to talk to somebody that is above his restroom maintenance grade and I'm going to have to worry about some government official knocking on my door.

I should never have started this thread.