I need to vent. (Taxes)

scumrat

I wasn't sure where to post this, but here it goes.

I had just received my tax forms back from my accountant with a note stating that he tried to call me but had a invalid number. In writing he told me that he did not put my rent down as a deduction just like last year. I was puzzeled, ( I wondered why I paid more state taxes last year ) Anyway, I call his office and spoke to his wife who is a partner in the firm. I told her that there was a mistake on my tax return and she said, " there was no mistake, we used the same information as last year ". I said that there was a mistake last year too but I had not noticed it until I pulled a copy of last year returns. She was pissed and started yelling saying that if we had to do the forms over they would charge me. I told her that I was disappointed because I went over all the information when I sat down with her husband who prepared the taxes. She puts me on hold and her husband get on the line and says that he didn't want to raise any red flags by adding my rent as a deduction. He also says that I wouldn't get that much back anyway. So I say, well if it's a wash between what I'm getting back and the extra your going to charge me, then I'll file as is. We ended the conversation and hung up.

I was steaming !!!! I pay this guy good money every year to do my taxes and find out that he's missing some of the basic deductions!! Anyway 10 minutes later I get a call from the office manager and she states that because I'm a long time customer, he will re-do them for free. I'm thinking, He screwed up he should do them for free and he should apologize for making the mistakes. But he didn't. I've been going to him for about 20 years and I get treated like this?

Out of curiosity I looked at copies of my previous years returns and found that he also missed other basic things. Looks like I'm going to have to find a new accountant.

scumrat

teenyuck

Rent as a deduction? Interest paid on a mortgage is deductible, however, rent paid to someone usually is not....

Is this guy and/or his wife a CPA?

Why not try H & R Block....they will do your previous taxes and for free...

Nathan Natas

The only way you can give this guy and his wifee what they deserve for their treatment of you is to walk - either find a new accouontant or take a look at tax preparation software.

How complex is your return?

I used an accountant when I first bought my home because I wanted to make sure that I didn't miss any deductions either. After two or three years I realized that my return was not a very complex one - my problem was lack of confidence about the tax rules and law, not lack of arithmetic skills - so I decided to try the commercially available tax prep software. For several years now I've been using TURBO TAX DELUXE - which I buy at a good discount from Costco - and I find it is very satisfactory. It can be set up to walk you through the process in step-by-step fashion, and it never YELLS AT YOU or hangs up on you. I think I paid $30 for it and that $30 is deductable, too.

I am very happy with my robot accountant, and I'll bet you would be too.

Mary

Rent as a deduction? Interest paid on a mortgage is deductible, however, rent paid to someone usually is not....

I'm not sure what it's like in the USA but here in Canada, you can certainly declare any rent you pay your landlord as a tax right-off.............unfortunately though, we cannot declare the interest you pay on your mortgage as a tax right off...........

teenyuck

Opposite here Mary. Interest on a mortgage is deductible. Rent paid to a landlord is not. With interest rates so low on mortgages, it would be better to write off rent.

I don't know which one is better....home ownership here is at an all time high

expatbrit

From the vantage point of 16 years in the accounting field, my opinion is that everyone should do their own taxes, unless they have very complicated situations. For most people, keeping the tax guide open and handy while you do your return is sufficient. Simply follow the line numbers.

Doing this will give you a better idea of your finances and general tax knowledge to impress your friends with at the pub, plus give you some planning ideas for next year.

Like for instance, Mary, creating situations where you can use mortgage interest as a write off. :)

Expatbrit

Elsewhere

Regarding the deduction of rent... as far as I know it can only be deducted if a corporation you work for is paying your rent. In that case, only the corporation can use the rent as a deduction. If you happen to be the owner of the corporation, and the renter, this will likely throw up some red flags. The only way to get around that is to use a Nevada registered corporation which does not keep records of who owns corporations. Even this is considered "fishy" by most.

Are you in the US or another country?

xenawarrior

I don't know what state you are in but in Wisconsin there is a "credit" available for rent paid- the Homestead credit. You can use the rent you paid to obtain a tax credit as long as you meet the income guidelines. Alot of folks confuse tax credits with actual deductions.

In any event, the manner in which you were treated would be enough to make me walk away. Customer service is just as important as technical skills and there are plenty of others out there who would love to have your business and will treat you as though they do.

You may want to have your previous return checked over by a professional and if there are errors found you can file an amended return.

Good Luck!!

XW

Elsewhere

You brought up something important XW. In Texas we don't have an income tax, so I was not even thinking about it.

Francois

To whom do you pay the rent? It sounds like someone is trying to avoid paying taxes on rental income to me. It also sounds like someone has violated professional standards and needs to be reported to the professional association. This one stinks to high heaven.

francois

I need to vent. (Taxes)

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