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Tax season

DrPizza

DrPizza

Administrator Elite Member Goat Whisperer
Any "experts" out there think it'll be easy to do my taxes this year? We've always done our own, but this year, the picture is a bit more complicated for us than in the past.

During the past year:
Refinanced House #1
Purchased House #2
Rent out House #1, after mortgage, taxes, repairs, etc., we actually lose money on the house.
House #2 is a small farm... we're attempting to farm as a side-business (more of a hobby) to make some money. So far, we have sold 2 dozen eggs for $1.50 each this year. However, we have invested 1000's in "farm" equipment, animals, and feed. Is this deductible?

I've never been so uncertain as to what to expect in January/February when I do my taxes.
Is this a tax software type of situation, or am I at the point where I need a live human being to prepare my return for me?
 
I'd get an accountant to do your taxes, especially since you've got investments in your farm. You'll likely be able to get a good bit of money back for that.
 
Just out of curiosity, the boys are able to patrol the property lines on their dirt bikes... are those farm equipment??
(j/k) I'd love a huge tax return this year...
Yeah, I know... interest free loan to the gov't and all that...
Still, I'd much rather have a huge return than be shocked at discovering I owe several grand. I think of it as a forced savings account.
 
I don't think I'm going to add more rentals in the future... one is a pita.. I can't imagine having more than one. Maybe it was just a bad year though. Hot water tank went bad. Wiped out most of a Saturday. Several months later, the new hot water tank died. Had to replace the thermocouple. Nope, that wasn't the problem. Had to order a thermostat... Just for the hot water tank trouble, I made 5 separate trips to the house. (25 minutes each way)

Then, there's the "railing over the back porch or we'll cancel the insurance" loss of another Saturday,

"We want the pond filled in" loss of a weekend

etc.
 
Pizza,

I'm with you!!

I'd love to get a little back. I think it works well for *most* families to do so. There's always somethin' comin' around the corner that can only be fed w/ money & that annual "interest-free" loan to the gov't (no matter how bad it is financially) is always nice to get back!!!

That said................ya, I'd get an accountant too.

I just think you have enough things going on at this point, that Turbo Tax would start soundin' more like a few loooooooong nights in front of a computer screen vs. just dumping everything into the lap of an accountant & letting them have at it.

It's almost ironic...........I already have a plan laid out for my own house to be paid off in the future and then I think to myself.........."OK, then what?". It's not necessarily the wisest thing in the world to have no tax-deductible investment (of which mortgages are a good choice) so I suppose that when I get there (where you are) I'll probably be in a similar boat. LOL!!!

Isn't life supposed to get EASIER as we get older??? :laugh:
 
Originally posted by: DrPizza
Any "experts" out there think it'll be easy to do my taxes this year? We've always done our own, but this year, the picture is a bit more complicated for us than in the past.

During the past year:
Refinanced House #1
Purchased House #2
Rent out House #1, after mortgage, taxes, repairs, etc., we actually lose money on the house.
House #2 is a small farm... we're attempting to farm as a side-business (more of a hobby) to make some money. So far, we have sold 2 dozen eggs for $1.50 each this year. However, we have invested 1000's in "farm" equipment, animals, and feed. Is this deductible?

I've never been so uncertain as to what to expect in January/February when I do my taxes.
Is this a tax software type of situation, or am I at the point where I need a live human being to prepare my return for me?
Click to expand...

Yes get an accountant.

You capitalize the equipment and depreciate over the life. You may be able to flow through the expenses directly to your income.
 
Farm as a hobby will not cut it as a business and expenses for it.

For the property sale and rentals, any tax S/W will be able to help you figure out what is what.
 
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