I want to start doing my own taxes. What program is best for landlords (one that would generate spreadsheets for depreciation, etc.)

Thanks for the responses.

-I have 13 properties (11 houses and 2 duplexes).

Don't mess with the IRS.

You cannot possibly stay current on changes in the tax law year to year, while a (good) CPA does continuing education to stay on top of these things.

My tax person - who specializes in RE - has saved me literally thousands of dollars in deductions that I would not have know about. They also are available for advice during the year.

Is that HUGE or "YUGE?" Sorry, couldn't resist!

I don't know what HUGE means. Some would say $500, some would say $1000. Have you really checked with everyone else, or is this one of those "fears" based on 1 or 2 examples? Shop it around. A guy/gal who just got into the biz may be looking to build up a client list and will give you a great deal.

I paid $185 this past April to my CPA who did all of our rentals, flips, and our personal returns. That included our e-filing fee for Federal and State. Throughout the year, he will give me answers to quick questions for free. I would pay up to $500 for this service, so I'm blessed that he charges so little.

Consider the value added, not only of doing the paper pushing, but also being able to get competent, up-to-date advice from someone who lives and breathes the ever-changing tax laws.

To answer your original question: you'll always need to purchase THIS YEAR'S tax software regardless of which package you choose. Most tax software packages keep track of your depreciation to date. My CPA uses TurboTax Pro.

About 15 years ago, I started doing my own taxes for the same reason that you are considering. So easy to do!

I use Turbo Tax Premier and it is wonderful. It even finds things that I didn't think of. And it keeps your file updated so Turbo Tax brings it up every year for you and you don't have to enter it again.

The only thing I would recommend is keep a spreadsheet for each property and update it monthly. Don't wait until the last minute. THAT is where the big work comes in.

I checked with 4 CPA's and they were going to charge anywhere from $1000 to $1500, and I currently pay my guy $150.

I am going to consider all of your excellent ideas.

I very much appreciate all of your thoughtful (and YUGEly helpful) responses---and the time you took to write. It's awesome when people take time out of their busy lives to help strangers. 8-)

P.S. Oh, and Sid, is there any possibility of getting your CPA's contact information just in case I decide to go that route? Thank you.

Price like real estate depends on where you live. A good CPA focused on investing and flipping can easily save you their fee over what would be done by an average CPA. Knowledge is power and while turbo tax and software is powerful, knowing how to input the data for optimum outcome is far more powerful.

We had a $150 a year guy for many years. He fired us when we got into rentals (well, when we got more than a few) saying it was not his area of expertise.

We went to another guy who SAID he knew but didn't. Ended up we knew more than him in some areas.

I've been doing my own, but I am bull headed, and have a background in accounting. Every year, I buy and read the NOLO Landlord tax book, every two or three years I read the NOLO small business book.

I literally use pencil and paper spreadsheets; I find it way too easy to mis-type when entering into a computer spreadsheet. I am going to all straight line depreciation, as that currently is the best fit for my financial and tax situation, so depreciation is easy. But, I only have a few properties. I expect to be able to continue this archaic method easily with about ten properties, if I ever get than many.

I only say this to encourage those with an accounting mindset to 'go it alone' if one has the aptitude. One thing is for certain- if you asked ten IRS auditors to calculate the proper tax for an investors rental return, you would get ten different answers. So, the 'proof' is in being able to defend your return as it is prepered. I sleep better at night knowing I can defend each of my deductions, and I fully understand how my return is prepered each year.

My husband prefers to 'trust' software programs, so each year I prepare the rental property portion of our return by pencil and paper, then we enter the data into a commercial software program. Each year, we find slight disagreements, and I am able to puzzle through, feret out the discrepancies, and show my husband proof of how my interpretation of the tax law is defensible, and how the soft ware goofed the calculations. He's gaining confidence in my pencil and paper returns.

WOW more helpful stuff. I can't thank you guys enough. Each and every response is appreciated.

Interesting about the "archaic" method (WI) and how it has worked so well ! :)

Well, all I can say is that I've been doing my own taxes for years along with that of a few clients.LOL.

There are few areas that get fairly technical when it comes to rental real estate in my opinion: 1)The passive loss rules which probably don't apply to anyone here and certainly not to me. I don't buy anything that's losing money even after depreciation 2) What to capitalize and what to expense and applying/making the de minimis safe harbor election 3)Calculating the gain and depreciation recapture upon sale and dealing with any suspended passive losses. 4) Installment sales 5) 1031 Exchanges.

I prefer to do the taxes in house.

I love reading tax law.

By now you have probably noticed that the correct answer starts with knowing a good deal of tax law yourself - in this way you will be able to quickly screen out an accountant who doesn't perform to your liking.

What is your aim-- real estate investor or accountant?

Interview a replacement-- better still have your current acct refer someone. That someone should know about real estate but in reality you should know more then the acct about what your doing. Always prepare/preplan your taxes-- don't get in a situation that has you saying-- man i should have thought about that last year or prior to investing in this?

Don't bring your taxes in a shoe box. set up quicken (or whatever) and be organized. There are several great books out there on how to do rental entry's for your size business. Be forewarned: off the shelf programs can only do so many property's -- then you move up to the big boys tax programs-- not the 200.00 programs but the master tax prepares.

MYOB, that's my point, too - what is your aim? I'm an RE Investor and (my own) Property Manager. Staying on top of that all year and knowing what's going on in our business is what's important.

A CPA - all they DO is taxes.

Trying to do my own taxes is as risky to me as trying to take out my own appendix.

Don't get me wrong, I spend quite a bit of time consolidating the information for our CPA! I turn over reports on each property and we spend a bit of time on conference calls or emails to nail down any grey areas.

I also do the pencil on paper spreadsheet for each of our few rentals. After reading a bunch of tax guides for rental real estate and a few practice rounds of pencil on paper returns, I found it was easy to replicate results generated by tax software. Without understanding what the software is doing, I wouldn't be comfortable doing taxes myself. But I've used H&R Block Premier ($75?) for years and felt confident about our returns being defensible. The program has an easy interview format with help and information available that also teaches you along the way, each year it gets easier. Last year's return was a breeze, because I know what data to anticipate to feed into the program. Also we don't have anything too complicated in our rentals.

With that many places, you need to consider the REAL cost of doing your own taxes...........you don't do taxes for a living so you maybe leaving money on the table.

my acct is a CPA also. Not bragging but only facts.

We set up quicken and quick books and very detailed. Asked the account to send her best office person who knew Quicken to come to the office after we ran it for 6 months to be sure it was set up right. Her girl said "you guys are way over my head in this I need to come here and learn".

Someone mentioned they have a CPA-- what that means to me is they have someone who signs their taxes. You as the investor need to know everything about rentals and in great detail. We get the Laseters tax guide and read and reread the property chapters on rentals each and every year.