Quote:
Originally Posted by retiredguy123
Just a question. You didn't mention anything about TurboTax. I owned small businesses for many years and always depended on TurboTax to keep up with the new tax laws and to guide me through the legal deductions. Don't most CPAs use tax software when they prepare a tax return?
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Can't speak for all CPA's but yes - the professional tax preparers all use tax software. The tax law - just the tax law - is over 40,000 pages. The complexity of all returns has made it necessary to use tax software because of all the interlocking calculations.
And yes - Turbo Tax is good at guiding you through the legal deductions. But the software - as an example - can't guide an owner of a s corp to get a home office deduction if it qualifies.
On Schedule C it's relatively easy to claim a home office deduction - but the S corp rules require a specific procedure to to be able to get a deduction (again if you qualify) and if you want to take the time.
Turbo tax doesn't go into the pension plan options - you can still contribute to some pension plans after 65, after you draw down on other plans and options.