taxes - do your own or use accountant?

[Anonymous]

I'm about to close on my first mat, to be held in an s-corp.

I've always done my own taxes using turbotax - any opinions on continuing to 'do it myself' vs. using an accountant?

This is an unattended mat, by the way. No employee hassles :)

- John in Illinois

[JBTcajun]

What i suggest is make a deal where you do as much work as you are comfortable. Have a CPA watch over and put into proper form. The fee for this is negotiable. You have the benefit of any new tax strategies, a CPA if you're records are challenged.
A good CPA will save you more than he costs over time. He will lend credence to you're books. In my opinion they are a necessary evil as are attorneys.

[pete f]

It has always been worth it to me to give my accountant my year end numbers and let him fill out the forms.

[blueridgemat]

I guess I am blessed (or cursed) because I am an accountant and a mat owner. But from what I see when I talk to new clients, most businessowners need guidance when it comes to their taxes. For example, if your mat is an S-corp, and if you personally own the building, you can let the mat pay you rent. It is a wash income and expense wise on your taxes (zero tax effect), but you still pocket the rent money. This is just an example of what a professional accountant can do for you. Your accountant doesn't need to be a CPA, but like in my case I worked for one over 3 years and that is how I learned the tip I mentioned above. No matter who you use, look the return over and if it doesn't make sense to you, get them to explain it to you until it does.
Good luck and may the force we with you! (15 years accountant, 2 years in the mat business!)

[Anonymous]

Well thanks for all the advice. I think I'll keep my accurate records, take a stab at it with turbotax at yearend, then review with an accountant.

Of course this presumes that the dang landlord gets off his butt and signs the lease assignment so we can get going on the closing.

Arrgggghhhhh, I'm ready to start counting coins and tired of waiting!

[Ken]

do your own bookkeeping,have accountant check in the end of year.

[pete f]

Blue ridge is correct, but that only works in some states. If your state charges sales tax on rent, which Florida does, it is CHEAPER to have the S-corp own it than pay the extra sales tax for "nothing" It show another reason why owning has an advantage over renting, at times, making those mats w/real estate in these type situations worth a little more when value them.

[CharlieS]

I attended a CLA seminar several years ago regarding taxes, given by a CPA/Laundromat owner. One of the sharpest CPAs I've ever talked too, and I generally don't have a lot of regard for CPAs.

Anyway, its worth checking with CLA and gettting a copy of the video.

BTW, I do all of my taxes on turbotax. I also subscribe to a tax newsletter. You have to know how taxed affect your business, and your options. Avoiding AMT, and the tax trap of accelerated deductions, is a big one.

Charlie

Charlie