Should You Use A CPA

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Should You Use A CPA

Should You Use A CPA

The following 5 items may be indications that it may be to your advantage to have an accountant.

If your income is under $200,000 then your likelihood of being audited is about.9%. If your income is over $200,000 your odds are 3.7% and if your income over $1 million it increases to 12.5%. Wouldn’t you prefer to have an accountant already on your side if the IRS contacts you?

Many taxpayers do their own tax returns (DIY) by using an off- the-shelf or online tax software. If you expended more than a few hours on your taxes this year, it’s time to ask yourself whether it makes sense to outsource this task to an accountant. Am I preparing the tax returns correctly or am I overpaying my taxes?

Most business and rental properties and take an expense called depreciation on capital assets. A tax accountant will know how to handle capital assets and depreciation. I good tax accountant will assist you minimizing your taxes.

You anticipate selling of stocks or other capital assets. An accountant can help you plan do that the gain is taxed at a lower rate than your ordinary income and help you find other ways to minimize taxes like tax-loss harvesting.

You want to provide for your children’s or grandchildren’s future. Accountants can be instrumental to help choose which vehicles to use for tax tax-free or deferred savings, whether you are considering a 529 plan for college savings or forming a trust for your grandchildren and children.

Available year-round. Most accountant offices are open all year and they will be able to answer important questions that arise not just during tax season but at other time during the year.

An accountant can help you plan do that the gain is taxed at a lower rate than your ordinary income and help you find other ways to minimize taxes like tax-loss harvesting.

A tax accountant is so familiar with the tax system, he or she can swiftly and effortlessly complete tasks that might take taxpayers hours of research. Even if your tax situation is straightforward, engaging a tax accountant will save your time and stress.

Here are some advantages of hiring a tax accountant:

You are too busy to do your own taxes. Having an accountant prepare your returns will allow you to accomplish your other tasks.

Similar to a respectable family doctor that knows your medical history, you can cultivate a rapport with an accountant so that he or she understands your family financial condition and future goals. The value of this advice can certainly exceed the extra cost of consulting with a tax professional.

The bottom line is this: the decision to doing your taxes yourself with software or hiring a tax accountant is a personal decision. If you only have a few W2s and own a residence then you may save hundreds of dollars by preparing your own tax returns, whereas those with business income, other investments and rental properties will discover the expense of hiring an accountant to be worth their peace of mind and potential tax savings.

The bottom line is this: the decision to doing your taxes yourself with software or hiring a tax accountant is a personal decision. Your comfort and knowledge with the tax code will be part of your decision, but the complexity of your finances should be the key determining element. If you only have a few W2s and own a residence then you may save hundreds of dollars by preparing your own tax returns, whereas those with business income, other investments and rental properties will discover the expense of hiring an accountant to be worth their peace of mind and potential tax savings.

A tax accountant is so familiar with the tax system, he or she can swiftly and effortlessly complete tasks that might take taxpayers hours of research. Even if your tax situation is straightforward, engaging a tax accountant will save your time and stress.


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