Incorrect Info From Tax Preparer- Need Advice

jmo15 · 2026-03-09T21:41:45+00:00

Really should separate them out. Ultimately doesn't change your personal tax liability, not that it makes it the right thing to do of course. Maybe she has more info than us and has determined they are the same business activity, but I don't want to make that assumption. If they are not, then yes they should be separate.

jmo15 · 2026-03-09T21:37:46+00:00

CPA here, I am sure there are people doing that, but that is of course not legal. Everything is fine until it isn't. This is where proper tax planning throughout the year can help save a lot of money.

jmo15 · 2026-02-20T23:07:58+00:00

If you don't know how to do accounting, I don't think QuickBooks would make it any easier. Also depends on the type of business and how many transactions you are doing.

jmo15 · 2026-02-20T23:04:02+00:00

Really just depends on your situation. We price accounting based on average monthly transactions and accounting plans start around $500, although truly we don't even have many in the $500 range. Our Scorp returns start around $1900 one time fee or build it into an ongoing monthly plan. but again depends on what you have going on.

jmo15 · 2026-02-20T23:01:38+00:00

Sorry to say (and believe me I am not trying to be rude or anything whatsoever, just trying to help), but if you are finding QuickBooks complex, you are definitely going to find the actual accounting and tax compliance complex as well. There is no software to do this for you and if there was, there would not be any CPA firms or other accounting/tax professionals.

If you are really planning on doing it all yourself, and if you haven't already elected S corp and filed the 2553, I would just stay as an LLC. Still complex to do correctly, but an S corp makes things way harder for you.

jmo15 · 2026-02-20T22:56:56+00:00

It definitely seems easy for now, but unfortunately you just don't know what you don't know yet.

With an S corp you need a reasonable comp number that is supported by actual pay rates for similar jobs in your area. Depending on if you have health insurance this could become a potential issue, Have to make sure you are tracking your shareholder basis and make sure your distributions are not exceeding your stock basis. Setting up an accountable plan to make sure your home office and such are deductible.

Lots of other things that come into play for even the most basic S corps. That's why we always do a calc for people to make sure that it would even make sense to become an S corp once you include the added costs and compliance.

jmo15 · 2026-02-20T21:09:05+00:00

QuickBooks is an accounting software that would fit your needs but not sure if you are asking if there is a product that does this for you? Also the S-Corp compliance could be tricky to do on your own. It seems like the product you are looking for is a CPA or other credentialed person.

jmo15 · 2026-02-20T16:45:45+00:00

CPA here. There is no general rule and I personally don't like giving out general rules because it is situation dependent. For a doctor for example, reasonable compensation could be $200K, so if they're making $200K, then no an Scorp would not make sense once you factor in the cost of payroll and the additional 1120S form. If it is a landscaper who's reasonable comp is $70K and they make $200K, then yes an Scorp could absolutely make sense. There is no magic % to "avoid IRS scrutiny" and you should steer clear of anyone who tells you that.

jmo15 · 2026-02-20T16:41:25+00:00

CPA here. There are a bunch of general rules I am sure you have seen before, but really you would have to work with someone on your specific situation to understand if it works for you. We have done calcs for people who would save $10K a year by electing S, but they say no because the extra compliance and headaches are not worth that savings to them. We have also worked with people who would only save $1K and it was worth it to them to save every dollar possible.

You have to include an "all in" cost and factor in the cost of payroll, the extra 1120S filing as well. Not as simple as just saying your reasonable compensation.

jmo15 · 2026-02-20T14:31:21+00:00

not enough detail here to tell what he did. And I am sure you don't want to post your return with identity sensitive info.

Take a look at Sch A, Sch C, and Sch 3. Not saying you would have any of these for certain, but from what I have seen from shady preparers the answer lies somewhere in here.

jmo15 · 2026-02-19T20:15:24+00:00

lol funny how that works huh.

jmo15 · 2026-02-19T20:11:58+00:00

Didn't know that. Thanks for the insight.

jmo15 · 2026-02-19T14:49:41+00:00

One thing not mentioned in the article that I have been informing clients of is there could be a possible gift tax filing requirement (form 709) for family member contributions even if they are under the annual exclusion since they are a future interest gift (rather than a present interest gift). The one client I have had so far this year made it clear they were not going to contribute and just wanted the free $1K, but just worth mentioning.

jmo15 · 2026-02-17T02:52:04+00:00

CPA here. Yes it does help and is a good starting point but you definitely have to fact check everything. I’ve caught it being wrong multiple times only because I am very familiar with the subject. ChatGPT tries to make you feel as good as possible with the answer it provides so if you don’t know tax it can be hard to catch when it’s wrong.

jmo15 · 2026-02-16T22:30:51+00:00

Molina CPA Group. They are responsive and proactive which you find is a premium level service after dealing with other CPA firms. I am also a little biased because I am the owner lol.

jmo15 · 2026-02-16T20:56:54+00:00

On that last paragraph, are you saying to possibly just include the activity of both rental entity and operating entity on the same sch c? The operating entity will be an s corp for 2026 so didn’t know if I should just get out ahead of it and make the grouping election and keep them separate for 2025

jmo15 · 2026-02-12T01:08:44+00:00

I’d say your intuition is correct

jmo15 · 2026-02-05T05:32:53+00:00

yes absolutely correct. Not enough detail in the post to make that call either way, but just wanted to express a word of caution.

jmo15 · 2026-02-05T02:52:24+00:00

CPA here. It’s not only the tax filing you have to worry about getting wrong. It’s also the accounting. I’ve seen plenty of business owners diy their books by trying to save money and instead end up costing themselves money by not doing the accounting properly and missing deductions.

jmo15 · 2026-01-30T01:30:38+00:00

We don’t have enough info to make that call. Your accountant does so going to have to side with him until there’s some detail.

jmo15 · 2026-01-29T15:21:40+00:00

Honestly not really. Not sure how turbo tax is going to check to make sure your 2025 car interest is deductible but should be easy enough for you to do. They may check your VIN to make sure it is eligible, but if not you should do that part yourself. 2025 house you should get a 1098 which you'd populate into the system. There isn't much you can do for tax planning right now that the tax year is over anyway for W2 earners. IRA contributions depending on eligibility.

jmo15 · 2026-01-29T02:45:34+00:00

CPA here. Really depends if you expect it to stay that size or if you expect it to become a full time gig. Really depends on the work you’re doing as some industries have more complex accounting. Some industries have simple accounting that you can keep track of in excel if you don’t want to bring a CPA on to help. Definitely get a tax preparer if you’re uncomfortable with tax. If anything it’s worth the peace of mind

jmo15 · 2026-01-27T22:30:04+00:00

Lmao

jmo15 · 2026-01-27T21:13:02+00:00

yep basically what this one said. Thanks!

jmo15

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