Tax Preparation Software

[IA_Chiefs_fan]

Is there one that is really as good as going to H&R Block and having it done? It would need to be some very complete software as I have no idea what I'd be doing? I hate spending $125 at H&R Block but I really hate waiting for an hour each time.

[Stewie]

Originally Posted by IA_Chiefs_fan

I just went through everything on Turbo Tax and it was fairly simple. One question I had though is pertaining to home improvements and my new mortgage. I spent $13,000 on a new roof and chimney but I couldn't find any place to take advantage of this. Is this an expense that should help with my taxes? Also, it asked me for fees associated with the refinance of my rental home but not fees associated with the mortgage on my newly purchased home. Should there be a place to take advantage of that as well?

If it's not the rental the $13K isn't tax deductible. It is, however, allowed as a reduction in capital gains if you were to sell your house and you're over the 250K/500K CG threshold (there is a limit on the time-frame that you can take advantage of the improvements). Not sure about the fee part as I haven't dealt with that. What fees were they referring to? Closing costs, etc.?

[ck_IN]

Flat Tax anyone?

If we had a national sales tax we wouldn't need this discussion. No forms, no tax preperation time, no IRS.

[IA_Chiefs_fan]

Originally Posted by Stewie

If it's not the rental the $13K isn't tax deductible. It is, however, allowed as a reduction in capital gains if you were to sell your house and you're over the 250K/500K CG threshold (there is a limit on the time-frame that you can take advantage of the improvements). Not sure about the fee part as I haven't dealt with that. What fees were they referring to? Closing costs, etc.?

Points, Appraisal, Processing Fees, Closing Costs, Title Search, Title Examination, Document Preparation, Title Insurance.....

[Stewie]

Originally Posted by IA_Chiefs_fan

Points, Appraisal, Processing Fees, Closing Costs, Title Search, Title Examination, Document Preparation, Title Insurance.....

Points are definitely deductible. That is part of the Q&A. You can go back to that point in the program and look again, or open the form where you itemized. Anyway, if it was a home purchase you can deduct the entire $ amount of the points this year. If it was a refi you can only deduct the $ amount of points divided by the number of years of the refi (i.e. $1500 points 15 yr. mortgage you deduct $100). You'll be able to take that deduction every year until the mortgage is paid or until something changes (sell the house, another refi, etc.).

Those other fees are not deductible as far as I know. Closing costs may be. I'd check into that because I think there are certain circumstances where they are deductible, although I think it's a narrow definition that allows it. Turbo Tax has a good help section that should explain. Let me know what you find out.

[Marco Polo]

What kind of TurboTax does everyone use or should I use? I have student loans, house (sold one this year and bought a new one), and am filing for two states. Can anyone please help?

[Stewie]

Originally Posted by Marco Polo

What kind of TurboTax does everyone use or should I use? I have student loans, house (sold one this year and bought a new one), and am filing for two states. Can anyone please help?

You can get by with the Basic edition. It does everything you need.