We have an accountant do our taxes. I’m really organized and keep track of everything and present it to him as such. No boxes of receipts from us! I want him to spend the minimal amount of time on them, hence keeping his bill as low as possible.
Once the taxes are done, I go through them carefully. Accountants make mistakes, too. In fact, last year I realized that the some property taxes had been omitted from our 2012 return and we had to file an amendment. Our accountant acknowledged that I had, indeed, included them in the tax organizer and he had missed them. So, he didn’t charge us to file the amendment.
Our accountant has just sold his practice to someone else. We will see how it goes this year. But I am pretty determined that I will start doing our taxes again – once the kids are done with college and we’re done flipping properties. I did our taxes for years and, without these complications, it was well within my comfort zone. In preparation, I recently spent a few hours creating spreadsheets to calculate depreciation on our rental properties. Between the tax documents from our accountant and researching accounting practices on the internet, I was able to figure it out.
This past month, I’ve filed returns for our sons. And I’m putting together everything our accountant will need for our taxes. As I do this I go over my tax notes from last year and have been adding new ones. For example:
– make sure to record the insulation expenses for residential energy credit
– find out how many books one of my publishers donated to a charity headed by a politician I would never vote for (I felt compelled to agree to forego the royalties)
– kept track of how I filed for the kids (website, login ids, passwords, hints)
– reviewed exemptions and deductions we qualified for (or not) in 2013, to anticipate how things might look in 2014