Tax questions answered here

[Gavin]

Block does average returns pretty well, but not complex. Better than most small tax shops, they do train their preparers, and they don't cheat. Fine for a couple W-2's, and itemized, simple schedule C or E, but that is not what I do very often. Usually have to account for several activities (S-corps, partnerships, trusts, rental activities, etc) before the 1040 can be completed. 

The limit on medical itemized deductions really stinks. The folks who benefit from that most are asset long seniors living in high priced nursing homes. 

[ollie]

I worked for Block and I had to take a 500 question test before I could do taxes, but Gavin is right, they don't teach the new people anything complicated so the old adage is true about choosing the right person to do your taxes.  Also if they don't have many people in the classes for the upcoming tax season they walk many through that test so they can just have a warm body.  I found that out when working with a few of them!  I would say anything complicated get you a CPA or an EA to do your taxes.  Just my 2 cents.

[dblades]

Most Block offices have at least one EA or at least they did when we sold our's several years ago. I've had to straighten out messes that were made by other tax services, other Block offices  and CPA's as well. 

[Gavin]

Finally done. Sick of stock brokers that sell Master Limited Partnerships to anyone with a pulse.

[Greasy B]

7 minutes ago, Gavin said:

Finally done. Sick of stock brokers that sell Master Limited Partnerships to anyone with a pulse.

Question 1. What are you talking about?

Question 2. Why do simpletons like me have to fill out a tax form? Surly the Feds already know what what I owe and what I paid. Are fools like me suckered into hiring a preparer just to support the industry?

[jdmidwest]

Quick question.  Are tax preparers happy that this day is over?

[Gavin]

The Feds know to some extent, if a form is filed to report covered income or deductions. Lots of stuff is still not reported. Income is pretty well covered with W-2's, 1099's, and K-1's, but lots of non-compliance in the 1099 area. Most deductions & credits are not reported. 

[Gavin]

Happy the worst is over but, but always a let down. 150 mph to 55 in a day.

[Greasy B]

3 minutes ago, Gavin said:

Happy the worst is over but, but always a let down. 150 mph to 55 in a day.

Be thrifty, drive 50 and go fishing. 

[Gavin]

Worst investment that you could ever make is when you buy some units in a publically traded partnership.Broker gets a high commish, you lose, your accountant has work to do it right. Cost basis is rarely right on your brokers statement, must be calculated. Easy if you know how, not easy if you don't. Mix of ordinary income, capital gain, and AMT adjustments.