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wt510151
Senior Contributor

Re: When do you hire a cpa?

When you see your cpa using an off the shelf tax software package, a person tends to wonder why you can't do the same.

Thank you for your dialogue, including the cost for his expected duties..

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Jim Meade / Iowa City
Senior Contributor

Re: When do you hire a cpa?

I imagine my costs are about in the middle of the range, but that is just a guess.  In addition to the farm income, I've had a number of other income streams, including charter pilot, flight instruction, I've done some writing and I even used to run a meter route.  Some of these are simple but some, like the charter flying, get involved in fairly complicated rules on when I can deduct living expenses away from home.  On the other hand, my farm is pretty small these days so I'm sure others more complicated farm income.  I use futures and options for hedges, have sold grain and livestock direct and so forth.  I've been able to hire my wife and daughter for with some tax advantages, as well as doing some creative farm rent between my wife and me that is legal but maybe not known by all.  You can see why I feel $500 is a fair and reasonable price to pay for what sometimes gets complicated.  Even when it is simple, the CPA knows things I can't keep up with.

 

Anyway, I've learned a few things in the discussion and enjoyed it so I hope all benefited, whether they use a CPA or not.

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kraft-t
Senior Advisor

Re: When do you hire a cpa?

Thank you Jim. You said it much better than I as your choice of words were less offensive. Ignorance was not meant to be a slam but merely an indication of uncertainty about tactics..

 

I do use the CPA as a  consultant before making major decisions. Such as a land purchase and what I can expect in depreciation schedules etc.What kind of tax liabilities I might incur with increased proceeds and expected expenses. It's not an exact science but it does give you some idea of how it might change your whole P&L statement.

 

The reason I hire a CPA is because I am uncomfortable with filling out my return. I am a good mathematician but am not a scholar on tax law. It is my objective to hire someone smarter than me and that should be most anyones objective.

 

Perhaps I owe WT a belated apology. My intent was not meant to insult him.

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ne 50
Veteran Contributor

Re: Tax Question

everything is 'attached' to your 1040.....

 

Schedules B, C, W2's  Depreciation Schedule.

 

forms sent in separately are 943, W3, 1099

 

notice schedules are attached, forms go separatly as a general rule....note your personal W2 and your spouse's are attached to the 1040....

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