When to Hire a Tax Pro

Here's a piece from Yahoo on when to hire a tax pro (see the bottom of the page.) Their thoughts:

Consider using a tax preparer if you:

• Don't mind paying a fee to avoid preparing your taxes
• Are unsure about the filing process
• Have made filing mistakes in the past
• Have increasingly complex finances
• You or a partner are self-employed, sold a home, have a lot of investment income or sold investments, own an income property or have a lot of itemized deductions.

As I noted in Why I Use a CPA to Do My Taxes, these are some of the same reasons I use a CPA. Here's my specific comment on each of the items noted above:

1. I don't mind paying a fee if I get more out of it than I give (isn't that the reason we all buy stuff?) Because of the time I save, the frustration I avoid, and the savings I get (things the CPA catches that I might not), I think I get more out of it than the cost she charges.

2. I'm fairly knowledgeable about the filing process -- it's the completing process that's frustrating to me. Better to avoid it in my book. ;-)

3. I don't think I've made filing mistakes in the past, but as my taxes seem to become more complex each year, the likelihood of this happening increases.

4. Yes, we have increasingly complex finances. Our income/expenses from this blog, while all donated to charity, still requires an extra measure of complexity that I don't want to deal with.

5. I have a side business, have a lot of investment income, usually sell a few investments each year, and have a lot of itemized deductions.

Given this criteria, I guess I qualify, huh? ;-)

Comments

[Bruce]

Well done. I would like to point out that everyone has specific needs, as you see it a CPA is your tax preparer. As I mention on my site one thing to look at when choosing a paid Tax preparer please find one that has experience in your field. A been counter although familiar with the tax industry and preparation, doesn’t mean he has experience (other than with your return) in all that you need, “I have a side business, have a lot of investment income, usually sell a few investments each year, and have a lot of itemized deductions.”

That said, with your permission I’d like to post link/s from my site to yours as I find you have a vast amount of information that should get out to as many as possible.

You link to the yahoo site expired, yahoo moved on I guess
Great day