Turbotax users with rental property..

[JustinH]

I've always done my taxes online, ever since I've been a kid working at the restaurant. I'm 26 now, bought my first income property, a double in West Seneca, NY.

We live in the lower unit, and rent the upper to pay the mortgage.

I have a mountain of receipts from expenses to improve the rental unit, and am expecting another mountain in paperwork from all these new deductions I will be claiming (mortgage interest, student loan, points, etc, etc)..

I'm looking at the online version of Turbotax premier. I don't have a relationship with an accountant, and I actually prefer to do my own taxes at home..

Turbotax is recommending that I upgrade to the 89 dollar software because I have rental property, and I am glad to pay it.

I was a taxfreedom turbotax user for years when I was younger and made under 25 grand per year, it was totally free..

Has anyone used turbotax premier in a somewhat complicated situation, with good results?

THANKS.

 

[Drew99GT]

http://en.allexperts.com/q/Tax-Law-Questions-932/Question-Duplexes.htm

Obviously you'll have to have software that will do schedule E and that can handle passive income and losses correctly (and I wouldn't trust turbo tax for [censored] in doing that!).

 

[PandaBear]

I do Schedule E by hand because I want to double check if things make sense or not. The first year I bring it to an accountant (14 years ago), then I start copying it and do it myself.

The only thing I imagine any software will do for you is ask if you have any receipt and which category it belongs to. You still have to separate the receipts in categories.

 

[dwendt44]

If it were me, I'd check out the prices at Wal-mart, Staples, Office-Max, etc. for the actual tax programs.
While there is little, if any discount at Wal-mart, the prices are sometimes better than the 'official' web site price.
Might check with Amazon as well.
Most of those 'retail' programs will up-date on line anyway.

If I'm not mistaken, the price of the Turbo Tax program may be deductible as well.

Panda's comments are good ones, too.

 

[JustinH]

When you buy a box version of turbotax, they charge you a 17.95 fee to file your state, and a 17.95 fee to file your federal.

If you use their turbotax online program, you get to run the entire program for free, and you only buy it at the end if you want to (89.99), and the filing is free.

Originally Posted By: dwendt44
If it were me, I'd check out the prices at Wal-mart, Staples, Office-Max, etc. for the actual tax programs.
While there is little, if any discount at Wal-mart, the prices are sometimes better than the 'official' web site price.
Might check with Amazon as well.
Most of those 'retail' programs will up-date on line anyway.

If I'm not mistaken, the price of the Turbo Tax program may be deductible as well.

Panda's comments are good ones, too.

 

[JayhawkRoy]

Wait until late Dec or early Jan, and Costco usually runs a coupon sale on Turbotax Premier. Many times Staples or some other office supply chain will match or come close to the Costco price, anyway.

It isn't that hard to do all of your expenses manually on Sch E, except for depreciation, which requires some long term bookkeeping and some detailed research to get it right.

I still maintain a logbook of all my property expenses because that is a bit easier than using a spreadheet, and categorize them by IRS expense category when I write them in. This could also be done easily on a spreadsheet.

Keep in mind that larger projects/renovations are not necessarily repairs (read the IRS rules carefully), but should be added into your cost basis, for proper accounting purposes.

 

[dwendt44]

Once I get the federal forms done, it's easy to print out and transfere the numbers to my state web site.
They offer 'file-in-the-blank' forms on-line.