Questions for CPAs

[Tacori E-ring]

I have a little problem and need some advice. This is the first year we are married and planned on filing together but we both own two business and I use a CPA for mine. DH likes to do his own taxes. Is it possible to have my business one done but have my DH do our personal? Is that just too difficult?

 

[Kismet]

No, that shouldn''t be difficult, especially if you keep your business records nicely separate from your personal ones. If you use a Sch. C or S Corp or other flow-through entity for your business you''d just have to finish that return first before you can finalize your personal return.

 

[Tacori E-ring]

One is an S-corp the other a partnership. I have seperate bank accounts though. Is my home office/ % of bills on my personal or business? He is just so set in his ways. I rather have a CPA do ALL of it. I guess that would be rather expensive though.

 

[larussel03]

I don''t know the answer, but I had to say GO YOU for both of you having your own businesses already! That''s really impressive!

 

[Tacori E-ring]

Date: 2/1/2007 4:24:51 PM
Author: *~Sweetpea~*
I don''t know the answer, but I had to say GO YOU for both of you having your own businesses already! That''s really impressive!

Ah, thanks! Actually we have had them for a few years now but now that we are married this tax stuff is such a pain

It seems very complicated!

 

[Kismet]

Heh, I''ve worked solely with corporate taxes for so long that I barely remember enough individual stuff to do my own, so take whatever I say with a grain of salt. Where did the deduction go last year? Just because you''re filing jointly wouldn''t change where you would deduct it. Really, a joint return isn''t all that different than a single return... some of the limitation are different but the whole set of rules doesn''t change just because you got married.

 

[Skippy123]

Hey,
I am not expert; I am an accountant and you can talk this over with your CPA.
This is my 2 cents and I do not claim to be an expert but, you will use the K-1’s from the businesses on your personal return. It doesn’t matter who prepares each. Hope that helps. Also, you hubby can go to the IRS website and get a publication 17 and that should help him with any questions he may have. The Publication 17 gives individuals info on income tax questions.

Oh here is the website: http://www.irs.gov/publications/p17/index.html

 

[merrijoy]

In response to your question, even though your DH would rather do it on is own, the use of a professional CPA should be able to help reduce your taxes and take into account both his issues and your corporation''s. Many aspects of your business will affect you personally and your husband will not be aware of these deductions or benefits. For example, the health insurance paid by you from your corporation is 100% deductable by you on your personal tax return. Other items such as the home office is probably already taken into account on the business and you may be double dipping in your deductions.

So in conclusion, it is most likely best to do it all together because in combination, one may benefit from the other and vice versa.

Another example might be capital gains issues - if he has gains and you have losses or vice versa, they may off set each other.
One more thing, Please do not forget to take the new tax credit for excised paid from your telephone bills. See link below.
http://money.aol.com/usat/tax/canvas3/_a/irs-wants-to-hook-you-upwith-a-refund/20070125155809990001

HTH,

and by the way, I am not a CPA, I just play one on TV....No just kidding, my husband is a CPA and just told me what to write in response to your question.

Mer

 

[Tacori E-ring]

Thanks so much for your responses! It doesn''t help that DH does real estate so he has sold houses (in both our names) over the past year. I really rather have a professional do the whole thing but he likes doing it on his own with the help of a tax program. Maybe if I found a more reasonably priced CPA I could talk him into it. I don''t really want to ask my CPA about my DH doing our personal b/c I don''t want to hurt his feelings (which I know sounds SOOO stupid!!!)

 

[diamondseeker2006]

I really would recommend having the CPA do it all THIS year since the marriage changes everything. Then after this year, hubby might can take on part of it again. I do ours, but if we had two businesses and just got married, there is no way on this earth I''d attempt to do it myself the first time!

 

[mrssalvo]

my hubby owns his own business and we have a CPA do both our personal and his businsess taxes. It''s been wonderful and we wouldn''t do it any other way. She has saved us a lot more than what it cost to pay her to do it or what we would have saved doing it ourselves. if you can get your hubby on board, I''d highly recommend letting a CPA do it.

 

[the other Jake]

Both the S-corp and partnership income will flow through on to your personal returns. You could have seperate CPA's (or husband) do each without a problem. They would just produce documents that you would need for filing your individual return. If he is experienced with doing his own taxes, I would go ahead and let him. It is really not that complicated if you know what you are doing.


ETA: I am not a CPA (but hopefully will pass the exam this summer!)

 

[the other Jake]

Real-estate further complicates the matter and I didn't see that your office is out of your home so that will affect some of your deductions. Add in short term and long term capital gains and losses and there is alot of room for error. I would suggest that your husband seek professional assistance, as this will be a complicated return and should be done with more than just an out of box tax prep software (unless he really knows what he is doing).

 

[Tacori E-ring]

Date: 2/2/2007 7:59:25 AM
Author: diamondseeker2006
I really would recommend having the CPA do it all THIS year since the marriage changes everything. Then after this year, hubby might can take on part of it again. I do ours, but if we had two businesses and just got married, there is no way on this earth I''d attempt to do it myself the first time!

We actually have FOUR businesses between us!

I''ll see what he says. I know he is not really a fan of the CPA I currently use. He is rather expensive or maybe he just pads his bills

My DH is just a do it yourselfer by nature. I think he just likes to do things on his own time, in his own way. Regardless I will be getting my CPA to do my two businesses. Jake, I am glad to hear the information will "flow" and hopefully be easy for him.

 

[Skippy123]

Tacori,
Maybe you could get your husband to use a CPA this year and make sure you get all the paper work from your CPA and use it as a templet for next year. It is not hard to look for tax credits you can take such as the phone credit. Also, some CPA''s let you do the work and turn it in to them for review and it sometimes costs less. Best wishes!!!

 

[Skippy123]

Here is an article when you should call in a CPA
http://finance.yahoo.com/taxes/article/102334/When_You_Should_Call_a_Tax_Pro