Tax time

[tnwalkingred]

All,

The lady who has been doing my farm taxes for years quit this year and is no longer doing them. I think I may start doing them myself and wanted to find out how many of you did your own and how many had other people do it? If you do your own is there a software you recommend?

Kyle

 

[Brute 23]

I have done my own when they were real simple. My brother is an accountant and was kind of looking over my shoulder. I used some kind of fill in the blank deal from Turbo Tax or some thing like that.

Then I went to paying a lady $100 because of needing to send out 1099s. She did as little as possible and would barely take the time to meet with you.

Now I use a guy that cost $300. He meets with me at leas twice a year. He also gave me his phone number in case some thing comes up during the year. If he can explain it on the phone it saves us both a trip to the office. He is worth every penny and gives good advice on business and financial planning in general.

IMO, its worth paying some one a little more to stay up to date on the tax laws. Especially right now. As a business owner I think our time is better spent working on the business. Working on your books and keeping good records will make your tax bill less. If you walk in and throw down a treasure chest of receipts vs printing out spread sheet... your tax bill will be higher... or they just won't dig through them.

With that said, most basic tax questions can be answered by typing the question in to a search engine on the e-net. It is your job to oversee what your tax person is doing. Do not be afraid... or too lazy... to keep an eye on what they are doing. They should work with you... and you should work with them... to do your taxes.

Plus, you are paying for a buffer between you and the IRS.

That's my thoughts on CPAs and their value. :kid:

 

[ga.prime]

I haven't done mine ever. CPA does mine at the cost of somewhere in the neighborhood of $900. My tax bill is zero.

 

[denvermartinfarms]

Mine are pretty complicated and I wouldn't dream of doing them. Our whole family has used the same tax person for 20 years and about 15 years ago my grandparents got audited, after the audit the IRS owed them money, no joke.

 

[jerry27150]

do my own, but farm taxes are due march 1 st

 

[highgrit]

I was under the impression if you don't pay quarterly your taxes were do March 1. Fishing and farming is the only businesses that don't have to pay quarterly, as long as your taxes are filed by March 1. I might be wrong, because we've been filing by March 1 for years.

 

[kdhansen]

I have used a couple different programs and use TaxAct now (and for last 5+ years). Pretty easy to follow. Have your last year's taxes handy, along with depreciation schedules that your tax person used to figure any depreciation. It's pretty much "fill in the blanks" with 2013 numbers (vs the 2012 numbers YOU gave to your tax person so they could fill in the blanks). Personal and business (farm). You can file your taxes electronically thru TaxAct, and will let you know when the IRS has received them. The program asks you all kinds of questions to cover almost all bases, pretty slick compared to the old tax programs.

 

[cow pollinater]

A GOOD CPA is money well spent. About two years into being much more than nothing(not that I've come far since then) I plopped my records on my CPA's desk and then I did my own taxes just to see how much he was sticking me for. His take on what I owed and mine looked quite a bit different and the more diversified I get, the better his version looks. I have yet to see a tax season where his payment was more than what he has saved me.

 

[1982vett]

do my own, but farm taxes are due march 1 st

Depends on what is your main source of income....

 

[TexasBred]

We've always used a CPA. It's their specialty and I like seeing that CPA at the end of their signature. Means I won't be going to the IRS office alone if I'm audited. ;-)

 

[tnwalkingred]

If you file early and farming is your main source of income you can avoid some penalties by filing early. For me being that it is secondary the April 15th deadline still applies. After looking at the depreciation schedule from last years taxes I believe I will hire an accountant to do my taxes.

Kyle

 

[Calhoun Farm]

We are doing ours 4/7. I'm wondering how I can put my truck on depreciation? Paid 24k for it 1/2013.

 

[Caustic Burno]

We've always used a CPA. It's their specialty and I like seeing that CPA at the end of their signature. Means I won't be going to the IRS office alone if I'm audited. ;-)

Amen brother.
Same CPA has done mine for the last twenty years.
Tried to pick one sharp and young enough when my old one retired I won't ever have to change again.
I don't even won't to answer the first question that is what I pay the CPA for.

 

[M5farm]

We are doing ours 4/7. I'm wondering how I can put my truck on depreciation? Paid 24k for it 1/2013.

You can depreciate it. Like everyone said get a good ag CPA or atleast a name brand tax service that dies farm taxes.

 

[millstreaminn]

I've never done my own taxes. The first year I had the hotel I took my books to the CPA that had been doing my personal-farm taxes for 10 plus years. He said I owed over 60k in tax. I then took the exact same set of books to a large CPA firm (they audit banks and such) they had my first year tax liability at 0. ZERO. Both of the people are CPA's, just goes to show there is lots of room for interpretation in the tax code, that's why I pay someone to do them.

 

[Bez__]

All,

The lady who has been doing my farm taxes for years quit this year and is no longer doing them. I think I may start doing them myself and wanted to find out how many of you did your own and how many had other people do it? If you do your own is there a software you recommend?

Kyle

Out of country to you - but it all depends on how big and how complex they are. Do not screw around with the tax man - never to be trusted and always to be kept at arms length.

If it is a simple thing it is easy - if not you are treading on thin ice.

We pay to have ours done - and like DVM have been audited - more than once - once we received additional money back - the last time we were square.

"Rather have a sister working in a whore house than a brother working for the tax man" is a common term in this neck of the woods.

Be safe

Bez

 

[TexasBred]

I've never done my own taxes. The first year I had the hotel I took my books to the CPA that had been doing my personal-farm taxes for 10 plus years. He said I owed over 60k in tax. I then took the exact same set of books to a large CPA firm (they audit banks and such) they had my first year tax liability at 0. ZERO. Both of the people are CPA's, just goes to show there is lots of room for interpretation in the tax code, that's why I pay someone to do them.

Millstream...I was told long ago by a CPA that if you have a deduction that is questionable....take it !!!! If they audit you all they can do is disallow it and recalculate your tax....but never, never, never fail to report income. That is tax evasion !!!!!

 

[Jogeephus]

I do all the day to day payroll and quarterly tax filings but in the end I give it all to the accountant and have him pull everything together and do the year end reporting.

 

[John SD]

Neighbor lady a couple years older than me has done my taxes since I started filing over 30 yrs ago. I'd be lost without her and it would be really tough to start with someone new. IMO, she is very thorough and charged what I consider a modest $150. I hope she doesn't retire until I expire!

My tax deal settled down quite a bit from last year. With my land sale, I paid megabucks in 2012 income tax. :yuck: :shock: Paid $0 tax in 2013 but did pay in for Social Security. 8)

The Kubota and new rake and snowblower all help considerably on the depreciation schedule. I could have bought a new pickup, but can't honestly say I actually need one. I put about 2000 miles on the pickup last year. Just don't have a need for a pickup much anymore.