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  1. #1
    Join Date
    Feb. 4, 2004
    Posts
    2,642

    Default Anyone do their own taxes?

    Yeah, I'm early, I know, just wanting to be prepared.

    So, this year I guess I became a boarding facility (1 friends keeps her horse at my house and in addition to a farm-sitting swap does pay me money).

    This seems like the simplest situation ever, so I hate to have to use a tax professional for this relatively small income alone, but I still have tons of questions about the expenses side.

    Anyway, for folks who do their own taxes, where have you found information on allowable deductions? I haven't really found what I'm looking for on the IRS website--are there better ones? Or books?



  2. #2
    Join Date
    Apr. 3, 2003
    Location
    Up the creek from bar.ka
    Posts
    10,038

    Default

    Find a tax person who is familiar with Horse businesses. It's worth every penny you pay in the long run!!

    You would be very sad if you took a tax credit that flagged the IRS to take a look at your business.

    I just drop my stuff off every year and pick it up and sign it and send it in. Piece of cake!!!



  3. #3
    Join Date
    Jan. 4, 2007
    Location
    TX
    Posts
    41,588

    Default

    There is a reason CPAs go to school for a few years and keep going to continuing education classes for CEU's to recertify every few years.

    We used to do our own taxes, until one year we had an estate to handle and used a CPA and boy, we sure had been leaving money on the table before that.

    We still do our books, but when it comes time to do taxes, a CPA does that for us and it is money well spent.
    You would be surprised how little a CPA costs, if you keep good books already.
    It never hurts to have a second set of eyes on what you do with any business.



  4. #4
    Join Date
    Feb. 4, 2004
    Posts
    2,642

    Default

    Quote Originally Posted by Bluey View Post
    You would be surprised how little a CPA costs, if you keep good books already.
    It never hurts to have a second set of eyes on what you do with any business.
    This is fair enough.
    I've always done my own taxes--how much does it cost to have them done professionally? (roughly)
    I know some folks who do their own (non-horsey) small business taxes, but I fear the gray areas (gray to me, not the IRS) of prorating--personal vs boarded horse, house vs barn, etc.
    Obviously this "business" is not lucrative, but I guess I should write off my losses for this year anyway.

    Thanks!



  5. #5
    Join Date
    Jan. 4, 2007
    Location
    TX
    Posts
    41,588

    Default

    If you have all your books up to date and in a format your CPA's computer can read, like we do, our CPA charges by the hour and it doesn't take them but a couple or three hours and we have multiple business centers to consider, so it is not really hardly worth doing that ourselves, missing something and possibly having mistakes.
    Also, every year little details keep changing and the CPA knows what works with what we do and what not.

    I like to have a set of independent eyes on the books, to be sure all is as it should be.

    You of course can do all that yourself, the information is out there for all to learn.



  6. #6
    Join Date
    Feb. 28, 2006
    Location
    The rocky part of KY
    Posts
    9,467

    Default

    Our accountant charges roughly between $200 and $300, we have pretty simple small farm taxes. Round about the end of the year we get a booklet in the mail and fill in the blanks so you will need to be keeping your books up and transfer the sums over. Pretty simple, but I used to do our taxes and could never keep up with the changes. I gave up in disgust the year that the accelerated cost recovery system changed to the modified accelerated cost recovery system and I had to try to figure out how to do all my depreciables yet again. Well worth it to do your own books and hire a pro for the taxes.
    Courageous Weenie Eventer Wannabe
    Incredible Invisible



  7. #7
    Join Date
    May. 16, 2005
    Location
    Elmwood, Wisconsin
    Posts
    1,373

    Default

    I have found that even the professionals get things wrong
    or miss some aspects. Also, you may find in doing your
    own taxes that you will want to change how you do some
    things to take advantage of certain tax situations. I found
    that the IRS publication "Tax Guide for Farmers" is very
    helpful. Its free for the asking and is written by farm folk
    for farm folk. While horse facilities don't fit "farm" perfectly,
    it does have a lot of useful suggestions and is worth the
    time it takes to read the thing in my opinion.
    Robin from Dancing Horse Hill
    Elmwood, Wisconsin



  8. #8
    Join Date
    Sep. 24, 2004
    Location
    Piedmont Triad, North Carolina
    Posts
    2,358

    Default Link here for tax guide

    Quote Originally Posted by Robin@DHH View Post
    I found
    that the IRS publication "Tax Guide for Farmers" is very
    helpful. Its free for the asking and is written by farm folk
    for farm folk. While horse facilities don't fit "farm" perfectly,
    it does have a lot of useful suggestions and is worth the
    time it takes to read the thing in my opinion.
    Even if you hire a CPA, it's important you know what questions to ask.

    The tax guide is available on line.

    Click here >> http://www.irs.gov/pub/irs-pdf/p225.pdf



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