Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Next Thread
Author: VIIIMials Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: tax help hmmm :/ Date: 4/15/2008 4:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Hey!

I have a question..

I am currently away at college and my parents offered to take care of my tax bill for me. I traded several times throughout the year and made upwards of 10 grand. My total tax bill came out to around $1200 after taking away commission etc.

Heres the problem: My parents accountant charged me $1300 dollars to create and fill out my forum!

I will be paying almost 15% of my income and $100 more than my tax bill just for the simple process of creating my 1040.

does that sound extremely excessive? and what can I do about it?

Lol H and R block is offering $29.99 services blah!
Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100389 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 4:29 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
My parents accountant charged me $1300 dollars to create and fill out my forum!

So how many stock sales did you have last year?? Did the accountant need to check for wash sales?

--Peter

Print the post Back To Top
Author: Hohum77 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100393 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 5:09 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 6
I am currently away at college and my parents offered to take care of my tax bill for me. I traded several times throughout the year and made upwards of 10 grand. My total tax bill came out to around $1200 after taking away commission etc.

Heres the problem: My parents accountant charged me $1300 dollars to create and fill out my forum!

I will be paying almost 15% of my income and $100 more than my tax bill just for the simple process of creating my 1040.

does that sound extremely excessive? and what can I do about it?



If the 1040 has already been filed, the horse has left the barn.

If you claim the process is simple, why did your parents have to do the filing? Seems to me you would have had access to most of the data i.e. stock transactions, personal data, etc. It would have been a great lesson in controlling costs.


Hohum

Print the post Back To Top
Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100395 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 5:13 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
VIIIMials writes (in part):

Heres the problem: My parents accountant charged me $1300 dollars to create and fill out my forum!

I reply:

Did you have any advance discussion with the accountant regarding how much he would charge? Or did you simply turn him loose?

Having said that, I've always done my own taxes, so I don't know what normal fees would be, but $1300 for what sounds like a relatively simple return (even if there were wash sale issues) sounds high enough that I would expect an experienced professional to have given the client a head's up in advance. --Bob

Print the post Back To Top
Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100396 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 5:17 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
does that sound extremely excessive?

On the surface it seems a bit excessive. How many hours do you think the accountant spent on the tax return? How many forms had to be completed? How many entries on each form (an entry for each stock sale, for example)? How complete and organized was the information provided to the accountant?

and what can I do about it?

Probably nothing at this time since the work has been done and I assume the accountant charged his or her standard rate.

H and R block is offering $29.99 services

For that they probably fill out a 1040EZ form that takes about 10 minutes.

Bob


Print the post Back To Top
Author: AlisonWonderland Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100397 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 5:29 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
I am currently away at college and my parents offered to take care of my tax bill for me.

You've got nicer parents than my kids have.

I've gone through the kids' tax returns with them as they enter the data and do the math so that they know what the situations are. The fact that they've been in college during this process just means we have less flexibility and have to manage our time better. Also, throughout the year, I've made them set aside money that's allocated to taxes so that if they have a tax bill, there's money for them to pay it. If they're earning money or otherwise getting financial benefit from their assets, I don't see why I should pay for that.

(obligatory snarky comment)
It seems to me that if you're in college and trading to the tune of $10 grand, why should your parents take care of your tax bill?

Heres the problem: My parents accountant charged me $1300 dollars to create and fill out my forum!

Expensive lesson, no? And what have you learned?

and what can I do about it?

Plan better for the rest of 2008.

~~ Alison, MOM (which stands for Mean Old Mom)

Print the post Back To Top
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100401 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 6:28 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
what can I do about it?

Do your own return next year. There's nothing overly complicated in your scenario.

Phil

Print the post Back To Top
Author: sandyw54 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100405 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 7:29 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
what can I do about it?

Do your own return next year. There's nothing overly complicated in your scenario.

Phil



It's not that hard. It's time you learned how to do it yourself. Good luck next year.

Sandy....who has a simple return and an even simple mind

Print the post Back To Top
Author: maracle Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100408 of 121585
Subject: Re: tax help hmmm :/ Date: 4/15/2008 11:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
: My parents accountant charged me $1300 dollars to create and fill out my forum!

Depends on the accountant and how much work. An accountant can easily charge $150 an hour...and if they typically work complex situations they might charge even more.

So if it took 8-9 hours to do your taxes it isn't necessarily unreasonable (although you could have gotten a better deal obviously).

How many trades did you have? were you trading short term? Did you have any schedules besides D? Did you transfer any shares between brokerages, or have accounts with multiple brokerages? How good was your documentation? If he had to spend a lot of time trying to sort through a lot of documents that weren't well organized it could take a handful of hours just for that.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Next Thread
Advertisement