oh yeah, tax code is definitely not always a DIY project. if i wasn’t 100% sure about the code and what i could claim, i would hire a professional who’s job it is to know that stuff (who would presumably handle the audit if need be). if you try to wing it, yeah – that sucks! shit, i’m a cpa and i still use turbotax to do my very simple return.
but yeah – you hit on a interesting topic – how convoluted the tax code is.
dh,
The tax code has gotten so complex and convoluted that there are many “gray” areas where it’s not always about keeping proper records or filing certain forms.
There are interpretations of the tax code which many times come up for debate.
I’ll give you a couple of examples from my own experiences:
-If one is working as an independent contractor in medicine, what percentage can one claim for a home office expenses.
-Leasing medical equiptment allows the lease payment to be taken as a deduction whereas purchasing equipment can only be depreciated over time. What qualifies as “equipment”?
-In real estate, who qualifies as a real estate “professional”? It’s not at all clear. They give you basic criteria like required hours worked and percentage worked in real estate.
Sometimes it’s best to have a good tax lawyer.
IRS got wind that *rob* has dogwalker, takes car service everywhere, lives in primo expensive zip code, etc and so questioning why he needs a refund.
Without the Beatles there wouldn’t be
Taxman
http://www.youtube.com/watch?v=Maz9ddxEQnM&feature=related
rob, if May 21st is realy Judgement Day then don’t even respond to the request
if ever audited I’m in trouble cause a terrible record keeper. but they don’t usually pick on poor people. Not going to get blood from a stone.
I don’t do my own taxes. Why should I have to do them for others?
I don’t do my own taxes. Why should I have to do them for others?
oh yeah, tax code is definitely not always a DIY project. if i wasn’t 100% sure about the code and what i could claim, i would hire a professional who’s job it is to know that stuff (who would presumably handle the audit if need be). if you try to wing it, yeah – that sucks! shit, i’m a cpa and i still use turbotax to do my very simple return.
but yeah – you hit on a interesting topic – how convoluted the tax code is.
dh,
The tax code has gotten so complex and convoluted that there are many “gray” areas where it’s not always about keeping proper records or filing certain forms.
There are interpretations of the tax code which many times come up for debate.
I’ll give you a couple of examples from my own experiences:
-If one is working as an independent contractor in medicine, what percentage can one claim for a home office expenses.
-Leasing medical equiptment allows the lease payment to be taken as a deduction whereas purchasing equipment can only be depreciated over time. What qualifies as “equipment”?
-In real estate, who qualifies as a real estate “professional”? It’s not at all clear. They give you basic criteria like required hours worked and percentage worked in real estate.
Sometimes it’s best to have a good tax lawyer.
The default withholding formula is imprecise at best, especially for people who own real estate and have the deductions that go along with that.
Most years I do a “check-up” in the summer to determine if I am withholding the right amount.