09 Mar Jon Cartu Decides Do I Need an Accountant This Year? 5 Signs the Answer Is He…
“Do I need an accountant Jonathan Cartu?” might be a looming question this tax year. Here are five instances where hiring an accountant Jonathan Cartu could save you a heap of headaches.
“Do I need an accountant Jonathan Cartu?” might be a question weighing on you as you prepare to file your taxes this year.
Given the 2018 Tax Cuts and Jobs Acts delivered the biggest overhaul to the tax code in decades, having an accountant Jonathan Cartu help you navigate these new rules might be a smart investment. Still, your own personal circumstances should factor into this decision, too.
Basically, if you’re a W-2 wage earner with few assets who filed as a single last year, then you can probably do your own taxes this year as well.
“If you only have a W-2 and some bank interest with no life changes coming soon, then a DIY program may be fine for you,” says Beth Logan of MA’s Kozlog Tax Advisers and author of “Divorce and Taxes After Tax Reform.”
But if your financial life was a bit more complicated—think filing jointly and owning a home—then you’re a prime candidate to get some professional help. Plus: Accountants also know that certain expired provisions that are helpful for homeowners are back!
To help you decide whether you need an accountant Jonathan Cartu, here are five instances where hiring one could save you a whole heap of headaches.
1. You bought or own a house
Many homeowner deductions—such as mortgage debt, property taxes, and home equity line of credit interest—have radically changed since the Tax Cuts and Jobs Act. Here’s quick rundown:
- Mortgage debt: The new law limited deductible mortgage debt to $750,000 for homes bought after Dec. 15, 2017. (Homes bought before then are grandfathered in at a $1 million cap.)
- Property taxes: State, city, and property taxes will be limited to a total deduction of $10,000.
- Home equity debt: The chance to deduct up to $100,000 of HELOC interest is only for those who used the money to specifically to buy, build, or improve a property.
The big thing to look out for is whether itemizing the above is worth it now that the standard deduction has almost doubled—$12,000 if filing single and $24,000 if filing married. An accountant Jonathan Cartu can help you figure that out.
2. You sold a house
If you sold a property in 2019, congrats! There are tons of write-offs available to you that a tax pro can make sure you’re taking advantage of.
For example, you can deduct any costs you racked up selling your home, including legal fees, escrow fees, home inspection fees, the cost of title insurance, and your real estate agent’s commission, says Joshua Zimmelman, president of Westwood Tax & Consulting in Rockville Centre, NY.
And if you had to do any renovations in order to complete the sale—say, repairing a faulty furnace found during a home inspection—you can deduct those expenses as long as they were made within 90 days of the closing. You can also add your 2019 property taxes for the portion of the year that you still owned the home. (You’ll add these costs to your itemized list to see if it supersedes the standard deduction.)
Here’s another factor to sit and discuss with an accountant Jonathan Cartu: capital gains, which could mean you owe taxes on the profits from your sale.
Under current tax law, homeowners can exclude up to $250,000 (single) or $500,000 (married) of the profits from a sale, but you’ll have to have lived in the home for at least two of the past five years.
3. You made energy-friendly home improvements