Author Topic: any accountants out there that i can ask a question?  (Read 632002 times)

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2580 on: January 14, 2025, 07:46:28 AM »
I believe by expensing your house, you need to start depreciating it.  Not sure if that's something you want to do
why not?

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Re: any accountants out there that i can ask a question?
« Reply #2581 on: January 14, 2025, 09:30:42 AM »
why not?
different tax forms and tax calculations needed, and if you sell there is more capital gains.  speak to your accountant

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2582 on: January 14, 2025, 09:56:26 AM »
different tax forms and tax calculations needed, and if you sell there is more capital gains.  speak to your accountant
I usually don’t speak to myself, but I’ll make an exception this time 😉

Your first point basically says, "Don’t DIY it," and I’m 100% on board with that.

The second point, I don’t agree with. It’s true that when (if…) you sell, you will recapture the depreciation and pay more taxes due to the depreciation taken now. But time value of money tells us that money now is worth more than money later. So, even if they sell, I’d still suggest getting whatever depreciation you can now and dealing with the gain later. You still come out ahead.

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Re: any accountants out there that i can ask a question?
« Reply #2583 on: January 14, 2025, 11:40:07 AM »
I usually don’t speak to myself, but I’ll make an exception this time 😉

Your first point basically says, "Don’t DIY it," and I’m 100% on board with that.

The second point, I don’t agree with. It’s true that when (if…) you sell, you will recapture the depreciation and pay more taxes due to the depreciation taken now. But time value of money tells us that money now is worth more than money later. So, even if they sell, I’d still suggest getting whatever depreciation you can now and dealing with the gain later. You still come out ahead.
Im not an accountant.  I just knew of the concepts and wanted to make sure all is considered.   So thanks for clarifying

Offline Berenstein Bear

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Re: any accountants out there that i can ask a question?
« Reply #2584 on: January 14, 2025, 06:10:13 PM »
I appreciate all those who are chiming in. Knowledge is invaluable and knowing which questions to ask when speaking to my accountant is super helpful.

Why does business use=deprecation? Isn't it just an expense? I could've otherwise been a smaller house..

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2585 on: January 14, 2025, 06:24:01 PM »
I appreciate all those who are chiming in. Knowledge is invaluable and knowing which questions to ask when speaking to my accountant is super helpful.

Why does business use=deprecation? Isn't it just an expense? I could've otherwise been a smaller house..
I’m not sure I understand your question. If you use property for business, you depreciate that property. If the business buys an Apple computer for $1,500 you take the full expense, even though you could’ve bought an Acer for $500.

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2586 on: January 14, 2025, 08:13:11 PM »
I’m not sure I understand your question. If you use property for business, you depreciate that property. If the business buys an Apple computer for $1,500 you take the full expense, even though you could’ve bought an Acer for $500.
There is a concept of “ordinary and necessary” for an expense to be deductible. So yea, if you buy yourself a mansion and want to depreciate it for your daycare business, that might pose a problem. But I don’t think that’s the case here.

Offline zh cohen

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Re: any accountants out there that i can ask a question?
« Reply #2587 on: January 14, 2025, 09:13:05 PM »
Why does business use=deprecation? Isn't it just an expense? I could've otherwise been a smaller house..

Disclaimer: IANAA

It isn't an expense, because you are keeping the equity in the home.

Offline Izzzy

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Re: any accountants out there that i can ask a question?
« Reply #2588 on: January 15, 2025, 12:23:32 AM »
I have very simple tax return (kolel check, wife on W2, daycare, mortgage interest). Will an accountant save me enough to justify the cost, as opposed to using TT. Thanks for any advice.

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2589 on: January 15, 2025, 10:07:52 AM »
I have very simple tax return (kolel check, wife on W2, daycare, mortgage interest). Will an accountant save me enough to justify the cost, as opposed to using TT. Thanks for any advice.
IMO, no. There’s not much wiggle room or tax planning available in your situation. The only thing I’m concerned about is the unknown. If you DIY your toilet and it flushes, you know you did a decent job and saved money over calling the plumber. But with taxes, if you miss (or overstate) a credit or deduction you didn’t know about, you’ll never realize it.

That said, most software prompts you for the basic credits. If you’re feeling somewhat confident, I’d say go for it.

Or, prepare the return using free software, then pay an accountant for this year and compare it to your return to see if there are any material changes. If not, then maybe next year just DIY.

Offline tzifanya54

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Re: any accountants out there that i can ask a question?
« Reply #2590 on: January 19, 2025, 10:24:20 AM »
I have very simple tax return (kolel check, wife on W2, daycare, mortgage interest). Will an accountant save me enough to justify the cost, as opposed to using TT. Thanks for any advice.
Back in the day, when I was in kollel I compared it one year, and TT got me more. Can’t speak for all accountants but generally these cases are not their money makers. They will take it on and give it a quick glance, or pass it off to someone junior. TT is great at prompting everything, and chances are they picked up some deduction that the accountant didn’t.

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Re: any accountants out there that i can ask a question?
« Reply #2591 on: January 20, 2025, 09:13:02 PM »
Is there an online calculator to see if/how much child/dependent care tax credit one can claim (for 2024)?

TIA
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Offline S209

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Re: any accountants out there that i can ask a question?
« Reply #2592 on: January 20, 2025, 10:12:06 PM »
Back in the day, when I was in kollel I compared it one year, and TT got me more. Can’t speak for all accountants but generally these cases are not their money makers. They will take it on and give it a quick glance, or pass it off to someone junior. TT is great at prompting everything, and chances are they picked up some deduction that the accountant didn’t.
If you choose an accountant that specializes in Kollel couples they have creative ways of getting you credits/deductions that TT won’t.
Quote from: YitzyS
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Offline herb

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Re: any accountants out there that i can ask a question?
« Reply #2593 on: January 21, 2025, 01:16:02 AM »
If you choose an accountant that specializes in Kollel couples they have creative ways of getting you credits/deductions that TT won’t.
do you have any specific accounts in mind?

Offline David61

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Re: any accountants out there that i can ask a question?
« Reply #2594 on: January 21, 2025, 01:49:41 AM »
I have very simple tax return (kolel check, wife on W2, daycare, mortgage interest). Will an accountant save me enough to justify the cost, as opposed to using TT. Thanks for any advice.

He may be able to give you advice that will save you money in the future, that you didn't think of, so its probably a good idea to use an accountant at least once (or once every handful of years). For example (1) he might say If you put X dollars in an IRA, your income will be lower and you will be eligible for certain valuable tax credits or (2) he may recommend unique opportunity for matching contributions to 529 plan for someone with low income, in certain states.

It would be nice if you could hire an accountant to just review your return and provide relevant advice, but most accountants won't do that, or charge you at least as much as it costs to complete a simple return. 

Similarly, even if you do primarily use an accountant, doing it yourself first on TT once every handful of years, will help you get educated, and probably means you'll get more out of working with an accountant, and how to be more efficient about taxes (e.g. long-term vs short term capital gains etc).

Another benefit of having an accountant, is if the IRS decides to audit, you have a professional on your team generally committed to helping you, even though he will probably charge for that. Navigating that alone can be very stressful and is often not a good idea. Finding a professional to jump in to help you at that point is much harder and more expensive.

« Last Edit: January 21, 2025, 02:06:34 AM by David61 »

Offline herb

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Re: any accountants out there that i can ask a question?
« Reply #2595 on: January 21, 2025, 08:50:45 AM »
do you have any specific accounts in mind?
*accountants

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Re: any accountants out there that i can ask a question?
« Reply #2596 on: January 23, 2025, 11:59:09 PM »
Not sure how to phrase my question exactly….

Im looking to make an offer on an off market real estate deal. The sellers would technically sell, but basically inherited the property and are just making profit as the debt is all paid off. They expressed that they are most concerned about the fact that are going to get hit with capital gains…

Any suggestions as to ideas I can present to them to hopefully make it an easier decision sell the property?

Asking from an accountants point of view, or creativity…

TIA

Offline Help

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Re: any accountants out there that i can ask a question?
« Reply #2597 on: January 24, 2025, 12:18:54 AM »
Not sure how to phrase my question exactly….

Im looking to make an offer on an off market real estate deal. The sellers would technically sell, but basically inherited the property and are just making profit as the debt is all paid off. They expressed that they are most concerned about the fact that are going to get hit with capital gains…

Any suggestions as to ideas I can present to them to hopefully make it an easier decision sell the property?

Asking from an accountants point of view, or creativity…

TIA
When was the property inherited?

Offline notyettaken

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Re: any accountants out there that i can ask a question?
« Reply #2598 on: January 24, 2025, 12:19:55 AM »
I am not an accountant but I don't think they will have to pay taxes as the cost basis is calculated from time of death, not the purchase date.

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances

https://www.thrivent.com/insights/taxes/how-does-the-capital-gains-tax-on-inherited-property-work

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #2599 on: January 24, 2025, 12:21:23 AM »
Yup.
Their "purchase price" is the value at the time they inherited, not the purchase price  that their parents paid.
So if they recently inherited, their capital gains tax will be minimal.

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