Thanks for these specific questions! This is exactly the kind of practical advice I was looking for. Did you find that you needed to change your bookkeeping system when you switched to the construction-savvy CPA?

Yes, we definitely had to adjust our bookkeeping. The biggest change was implementing proper job costing - tracking materials, labor, and overhead by specific project rather than lumping everything together. This allows for much more accurate profit analysis and better tax planning. We also started tracking vehicle usage much more carefully and implemented a more sophisticated inventory management system that helps with year-end valuation. It was an adjustment at first, but the tax savings and better business insights made it completely worthwhile. My CPA actually recommended specific QuickBooks settings for construction businesses that made a huge difference.

Can confirm this is huge! My CPA switched me from cash to accrual for my construction business and it evened out my tax liability so much. No more getting killed in taxes after completing big jobs in December.

Thanks for this perspective! What's the typical price difference between H&R Block vs an enrolled agent? And what specific questions should I ask to make sure they're familiar with server income/tip reporting?

H&R Block typically charges $200-300 for your situation, while independent enrolled agents often start around $150-250 for similar complexity. The key difference is personalized attention and expertise. When interviewing a tax professional, ask them: "What specific documentation do you need for properly reporting cash tips versus reported tips?" A knowledgeable preparer will mention Form 4137 for unreported tips and explain how tips affect your Social Security earnings. Also ask: "How do you handle capital gains when the broker hasn't provided complete basis information?" They should discuss Form 8949 and methods for documenting your original purchase price.

YES! Same thing happened to me. I was using a different tax place (not H&R) but when I switched to doing it myself, I realized they never asked about my TIPS training certification costs or my server book purchases. All deductible! I also file HOH with a dependent and found the child tax credit stuff pretty straightforward.

Exactly! I think a lot of these mass-market tax places just rush through everything too fast. I spent maybe an hour more doing it myself but found like $300 more in deductions. Plus I learned a lot about what I can claim next year. The stock stuff was a little tricky but the software walked me through it.

Wait, can you explain more about the QBI deduction? I thought that didn't apply to rental properties unless you're classified as a real estate professional? I'm just doing this on the side while working a full-time job.

You're right that the full benefits come when you qualify as a real estate professional, but there's still potential QBI benefit for "side" landlords. Revenue Procedure 2019-38 created a safe harbor that allows certain rental real estate enterprises to be treated as businesses for the QBI deduction. To qualify, you need to keep separate books and records for the rental activity, perform 250+ hours of "rental services" annually (less than the 750 for full pro status), and maintain contemporaneous records of your time spent. Even if you don't meet the safe harbor, you might still qualify under the general rules if your rental activity rises to the level of a "trade or business" rather than just an investment.

The Self-Directed IRA for rentals works but has serious limitations. You can't do ANY work on the property yourself - not even changing a lightbulb. You must hire a property manager and third parties for everything. Also, you can't use any personal funds to pay property expenses - everything must come from the IRA itself. The bigger issue is that you lose all the normal tax benefits of direct ownership - no depreciation deductions, no mortgage interest deductions, etc. Plus, if you use debt financing (mortgage), you'll trigger UBIT (Unrelated Business Income Tax) on the portion of income attributable to the debt.

9 Do you need to meet with your CPA in person? I live in a rural area without many tax professionals nearby, but would be open to working with someone remotely.

4 I've been working with my CPA entirely remotely for the past two years. We do a video call to discuss my situation, then I upload all my documents to their secure portal. It works perfectly, and I never have to leave home. Many CPAs now offer virtual services since COVID changed everything. The best part is you're not limited to local professionals - you can find someone who specializes in exactly your tax situation regardless of location. Just make sure they're licensed in your state since tax laws vary.

19 That's a good point. I think it really depends on your specific tax situation and how comfortable you are researching tax questions yourself. Did you find TurboTax handled the education credits well? That's the area I'm most confused about with multiple kids in college.

How much is the fee to set up a payment plan online? Is it better to just pay in full if you can?

The fee for setting up an online payment plan is currently $31 if you do direct debit payments. It jumps to $130 if you pay by check or money order. So yeah, if you can pay in full, that's always best to avoid fees and interest. Always better to pay in full if possible since the IRS charges both setup fees AND ongoing interest for payment plans. The interest compounds daily too, which adds up fast.

Yes, if you still have an outstanding tax debt when you file next year and are due a refund, the IRS will automatically apply that refund to your outstanding debt. It's called a tax offset. They'll send you a notice explaining that they applied your refund to previous tax debt.

Thanks for explaining! That's actually not terrible then, kinda like an automatic payment I guess. At least the money's not just disappearing into a black hole lol.