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Wow this is getting out of hand.....
Ok, number one, your rental mortgage interest is definitely NOT your own mortgage interest on Sch. A. It goes to Sch. E as part of your rental expenses. The only time there is crossover is a vacation rental situation with mixed personal/rental use. If it’s a full rental, nothing will be on your Sch. A.
Second, as you’ve said you are not a tax person and that is fine, I don’t judge like other people on here. I failed the AUD part of the CPA three times because I’m not an auditor so I get it! My point is if you have a new rental with depreciation and you are a part-year and/or dual resident of NY/NJ, there is no way in hell you should be doing your own return this year if you are not in tax. Both NY and NJ are extremely aggressive on residency, there are many nuances on dual-res or Part-year returns and you need to be careful this year.
Please use a professional for this year and then try again on your own next year when you don’t have so much going on.
My two cents 🤷🏼♂️
Thanks for that EY4! I appreciate I’m well out of my depth but was being lured by a large - probably wildly incorrect- refund.
@senior tax accountant 1 rightttt. Because everyone at B4 is in tax 🙄 that’s like me saying you should know advisory and audit well
assuming you have 2 pieces of paper to compare? OP said the turbotax won’t allow him/her to print it out and compare. I thought no accounting profession should just makes such statement without sufficient evidence?
I can almost guarantee it’s related to the depreciation. The same thing happened to me the first year I had a rental property. Check the worksheets and see where the amounts differ.
Another point to consider - If you are not an “active participant” in managing the property, your passive losses cannot exceed your passive income. So see whether your accountant checked that box
I had the same thing with rental property. The accountant was correct. Turbo tax handles depreciation poorly
OP, not sure if your office is offering this, but why don’t you get someone in Tax to help you look through it?
I also work at EY and my office is offering this service where one person can help we non Tax people and immediate family members, with preparing and filing. Even if you decide to file with TurboTax, you can get another opinion ☺️ I haven’t used this service, but it can be an option if you’re having a hard time reconciling things.
Not sure what’s driving your difference but I had a similar experience where turbo tax caught more deductions than my cpa... I guess depends on how experienced your cpa is but I like to use TurboTax myself. No one cares more about your money than yourself.
I work in advisory and am happily not focused on taxes as a full time job
As far as I can tell there are two differences: 1. Mortgage interest - accountant told me the rental property interest is all on Schedule E, turbo tax has it up by my primary residence, I believe Schedule A (they don’t let you print it out unless you file). I’ve asked the difference/ benefits but haven’t got a response. 2. NY-NJ taxes - I was a partial year NJ resident. TurboTax gives you a benefit for “double taxed” income. As far as I can see on my NJ state accountant return, there is no such credit. Also asked the question to the accountant but have not received a response.
I know there are a ton of tax people in fb so I figured it was worth a shot getting another opinion. If you have a suggestion on how I could rephrase the question into something tax people understand, I’m all ears.
Appreciate any thoughts! Thank you!
reconcile but it just seems odd. We’re filling jointly and have a new rental property last year, but otherwise not super complex
Any qualified tax accountant should be able to explain why the numbers vary. It’s hard to know what is done differently unless you ask. The forms look a lot different than 2017. Are you calculating depreciation on rental property correctly through ultra tax? There are so many variables
You may need to get a wage summary. NY is one of those states that recognize your entire year’s salary as taxable income even if yuh worked there for like a hour. I used to deal with that every year.
They assume all your income is taxable to start. Then you fill out a schedule backing out your non-NY income. If you don't fill out the schedule, then yes they tax everything
I always use TurboTax.
I have used a couple of different self preparation programs and I prefer turbo tax. But I'm on the tax side of things so I know enough to fly through parts of the process that have nothing to do with me and spend time on what matters most.