definitely need to get a new tax accountant next year!
#1
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definitely need to get a new tax accountant next year!
So just got back from France, trying to sort out of all the business that occurs with 2 sick parents going into a care home in a foreign language which I cannot speak. No issues apart from the notaire who has done a disappearing act. Customer service uniformly brilliant and considerate.
Call from the tax accountant this morning (I put in our taxes the first week of March). What is the cost basis of the stock sold last year? I don't know, isn't it on the 1099? Its blank. Me-Sorry have no idea Next question- what is the exchange rate for the interest on your foreign bank account? Again, I don't know. Clients normally provide the exchange rate for us. I haven't in previous years. Isn't it set by the IRS in Jan, Don't you know how to use the IRS site? Yes, but people normally supply the exchange rate.
What are we paying them for? Each year they provide a work sheet which I fill out and give them all the paper work. So basically I have done most of the work for them so calculating the exchange rate on £40 odd in interest seems a minor problem to work out and as for the 1099 isn't that their job?
Must admit I have had concerns before this year as more and more regs are coming about due to FATCA Fbar,8938 but they seems to be dealing with that OK. However, as I am meant to be get a small DHSS pension starting in a couple of years, think it time to look around. Fortunately, husbands UK pensions don't kick in for several years but I should imagine they will be a nightmare. Maybe my daughter will be able to do them eventually, (she is training to be an accountant), I hope so
Call from the tax accountant this morning (I put in our taxes the first week of March). What is the cost basis of the stock sold last year? I don't know, isn't it on the 1099? Its blank. Me-Sorry have no idea Next question- what is the exchange rate for the interest on your foreign bank account? Again, I don't know. Clients normally provide the exchange rate for us. I haven't in previous years. Isn't it set by the IRS in Jan, Don't you know how to use the IRS site? Yes, but people normally supply the exchange rate.
What are we paying them for? Each year they provide a work sheet which I fill out and give them all the paper work. So basically I have done most of the work for them so calculating the exchange rate on £40 odd in interest seems a minor problem to work out and as for the 1099 isn't that their job?
Must admit I have had concerns before this year as more and more regs are coming about due to FATCA Fbar,8938 but they seems to be dealing with that OK. However, as I am meant to be get a small DHSS pension starting in a couple of years, think it time to look around. Fortunately, husbands UK pensions don't kick in for several years but I should imagine they will be a nightmare. Maybe my daughter will be able to do them eventually, (she is training to be an accountant), I hope so
#2
Re: definitely need to get a new tax accountant next year!
The capital gains question is understandable - this is an answer he cannot know unless it's on the info you give him, and 1099s often do not have cost basis, never if the asset wasn't purchased through the selling broker.
The question on exchange rates on 40 GBP interest is less understandable. Any value gained from not using the IRS rate will be exceeded by the cost of him phoning to discuss it with you.
When we first had to pay our joint taxes, it was clear to me that any CPA can only do so much, and often is just working through a basic process themselves. It was when we met our then-CPA to finalise our 2012 taxes and I pointed out two misunderstandings he had of the 1-page summary of tax changes for 2013, that I realised I should probably just save money and do it ourselves.
The question on exchange rates on 40 GBP interest is less understandable. Any value gained from not using the IRS rate will be exceeded by the cost of him phoning to discuss it with you.
When we first had to pay our joint taxes, it was clear to me that any CPA can only do so much, and often is just working through a basic process themselves. It was when we met our then-CPA to finalise our 2012 taxes and I pointed out two misunderstandings he had of the 1-page summary of tax changes for 2013, that I realised I should probably just save money and do it ourselves.
#3
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Re: definitely need to get a new tax accountant next year!
This actually surprised me this year - no cost basis reported on the 1099s - you need to go look at the actual records/transaction summaries as I was told they don't report cost basis on some stock sales anymore - makes life more fun
#4
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Re: definitely need to get a new tax accountant next year!
They caught me at a bad time, jet lag and stressed about my parents. Of course, doesn't help that DH refuses to even look at a tax form. Both of us are like headless chickens in that regard despite the excellent posts on this forum.
Thanks for the heads up about the blank space
So miss the simplicity of the UK system
#6
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Re: definitely need to get a new tax accountant next year!
Don't see any difference in our tax bill, still huge, no tax deductible children any more. Even as a higher tax earner in the UK, it was much easier doing our taxes as the correct amount of tax was taken out at source. Just more paper work here. However will probably do our own taxes for a few years as no change in our overseas accounts for the foreseeable future and definitely no changes over here.
#7
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Re: definitely need to get a new tax accountant next year!
Don't see any difference in our tax bill, still huge, no tax deductible children any more. Even as a higher tax earner in the UK, it was much easier doing our taxes as the correct amount of tax was taken out at source. Just more paper work here. However will probably do our own taxes for a few years as no change in our overseas accounts for the foreseeable future and definitely no changes over here.
#8
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Re: definitely need to get a new tax accountant next year!
yes, mortgage, property taxes, etc, sales tax, charity put in but still a big tax bill. Not complaining really but I just hate paperwork. Never even got Math O level (not offered at the 2nd secondary school I attended) so numbers have always freaked me out. I read all the Fbar, fatca stuff on here and I think to myself, this is just too complicated.
Last edited by jjmb; Apr 10th 2015 at 2:26 am.
#9
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Re: definitely need to get a new tax accountant next year!
yes, mortgage, property taxes, etc, sales tax, charity put in but still a big tax bill. Not complaining really but I just hate paperwork. Never even got Math O level (not offered at the 2nd secondary school I attended) so numbers have always freaked me out. I read all the Fbar, fatca stuff on here and I think to myself, this is just too complicated.
#10
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Re: definitely need to get a new tax accountant next year!
I have never looked into in depth as it seems we pay tax everywhere in the States. However, when we left Scotland, we had 3 x child benefit, I got free medication due to Thyroid issues, my kids got free health care, dental care and eye care. As I had just be diagnosed with type II diabetes, a complication of the thyroid condition, I got free eye care exams and I had 3 monthly checks at the hospital, none of which I have over here. Fortunately my GP over here is very good. My husband got a car allowance and a tax allowance for private health care. My council tax was less than £1000 a year and I got a lot services for that. Here we pay nearly $6000 (which is cheap for this area) and barely any services.
I get that maybe we pay less tax over here but we don't get much for it as far as I can see. I would hate the States to go the way of the UK with their welfare benefits (I have plenty of family who 'benefit' from the system) but I do wish they would help out the less fortunate in society. Seems to me that the lower middle class earners in this country could do with a lot more help. I would be happy to see my tax dollars spend that way instead of lining the pockets of our senators, representatives and lobbyists.
Anyway, need to go down to the tax clerk who seemingly does not under currency conversion.