It soon will be time to file a tax return. I was divorced in May and our house (owned jointly) was sold in September and I bought a new one in my name only. After paying closing expenses, there was minimal gain on the sale which I think may or may not be taxable. <P>I am trying to figure out if I can file as Head of Household (not sure if I paid over 1/2 of costs of home) and if you can split the interest deduction, among other things, in connection with our prior mortgage.<P>Any tax experts out there? Should I just go to H&R Block or hire an accountant?<P>I have Turbo Tax but somethings are still unclear. It looks like I can file as Head of Household and get a good refund. My x has to file as Single with one exemption and is concerned he is going to have to pay a lot of taxes. I agreed to work with him during this time to make sure we both come out of this pretty much even. So, I'm trying to figure out how this all works and the IRS site is somewhat helpful but I still have a lot of questions and it is taking forever to search the site for answers to my specific questions.<P>I hate to spend more money because of the stupid divorce but I think I might just have to do that. <P>Any suggestions?<P>Thanks!

HRBlock is much cheaper than an a tax accountant, and you probably don't have much<BR>that is very difficult for an HRBlock<BR>rep.<P>The house is tax free sale.<P>any difficult questions, <BR>whanifindthetime@yahoo.com<P>tom

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by WhenIfindthetime:<BR><B>The house is tax free sale.<BR></B><HR></BLOCKQUOTE><P>In most cases, yes; but not if they didn't live in the house 2 of the last five years (usually only a problem if you owned 2 years or less). Also, an individual only gets nonrecognition up to $250k; a couple only up to $500k. <P>Still a nice dodge, especially since you can buy and own rental properties, trade them up and up tax free until you have a huge lurking gain, then do one last free swap into a mortgage-free mansion ... then move in for 2 years, sell it, and potentially (as a reward for your cunning and patience) pocket $500k profit with *zero* tax (note: you will need a new spouse in order to do this). (and guess what: while you're in the mansion, nothing keeps you from trading another group of properties so that you already own the *replacement* mansion when you sell the first). <P>It is beyond my comprehension why the infomercial crowd isn't touting this gigantic loophole.<P>

Recommend you think twice about tax companies like HR Block. The representative you deal with may not know much more than you do.<P>I've been doing Income tax for virtually everyone in my family and for my mother's ranch for thirty years. Yes, I do use Turbo Tax and have been using it for several years.<P>About every five years, I pay to have the taxes done by a certified public accountant. Costs a little more, but the information is worth it, and the IRS seems reluctant to challenge returns prepared by a CPA. Following a divorce, professional help isn't really optional.

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR><BR>I've been doing Income tax for virtually everyone in my family and for my mother's ranch for thirty years. Yes, I do use Turbo Tax and have been using it for several years.<P>I pay to have the taxes done by a certified public accountant. Costs a little more, but the information is worth it, and the IRS seems reluctant to challenge returns prepared by a CPA. <B> Following a divorce, professional help isn't really optional. </B><BR><HR></BLOCKQUOTE><P>1) 711 asked what she should do to clear up some items that she is confused on. are you offering your services?<P>2) what does the bold mean?

Okay, just my two cents worth, but in my opinion the answer is:<P>YES!!<P>Hire someone to help with taxes unless you or one of your relatives is a CPA. Here's why. This one year of your life, there are tons of variables that we would never have time to discuss on this board. However, you would be able to show everything to a tax professional who would be able to advise you not only about this year, but about how to proceed maybe for the next two or three years (for example, put XYZ here and take this loss this year and that next year. <P>In a nutshell, I would not go to H&R Block or use Turbo Tax, because they are best suited for situations that are fairly straight forward and uncomplicated. With a divorce part way through the year, a home sale and a home purchase, my guess is that there will be additional variables that you have not mentioned that could change the tax situation. For example, what happened to the retirement funds (if any), the college funds (if any), how were health costs split, etc.? <P>So, YES, hire someone this one year. It may cost more than an H&R Block or a Turbo Tax, but it will get you on the right track and next year I'll bet you can do them on your own!<P>CJ<P>------------------<BR>Judge your success by what you had to give up in order to get it.

I would forgo using H&R Block. I have used them in the past and they never did anything more than I could have.<P>I use an accounting firm and he tries every which way to see which gets me the best return. H&R never did that for me.

I have used CPA firms before, and I might take your advice CJ, thanks for convincing me with a sound argument. I guess I should return my turbo tax i bought Saturday!<P>but i hope the cost doesn't outweigh the benefit. I have put tax CPA's through research, and basically, I could have taken the IRS to tax court for a special situation,<BR>which alot of the tax attorneys agreed is not covered, or at least is a grey area.<P>but in the end, is the cost worth it? If so,<BR>you need to make an appointment now, and it all filled out and all your records so that he doesn't charge you for adding up the little things.<P>BTW, since I work with a bunch of CPA's, my boss, my two former boss, the external reporting staff here, the last controller, and I took the exam myself (as a walk in) be certain that you get one that specializes in tax. CPA doesn't guarantee solid tax knowledge.<P>tom

The consensus seems to be to get a CPA so that is what I will probably do. My x said he would split the cost and I can deduct fees. <P>If there was ever a year to have my taxes done professionally, I would think this is the year.<P>I'm having dinner with a friend Saturday who happens to be a CPA but I don't know if they specialize in taxes or not. Wouldn't that be nice.<P>Thanks for your help,<P>Jen<P>

Tom,<P>The posts that followed mine explain the idea a lot more clearly than what I wrote. I should have written the statement in a positive sense.<P>The idea is that following a divorce, the service of a CPA who practices in the tax field is well worth the fee. The information and advice is extremely important not only for this tax year, but for the future as well.<P>NO, I am not offering my services, I'm no where near that good. <P>Bumper<P>

Jen,<P>I would be VERY careful with H and R Block, or Jackson Hewitt for that matter. I have been to both and sometimes, there are people in their first year and just let the PC do all the work. If you do go there, request the person who is most experienced and been there the longest. <P>I paid almost three hundred dollars last year, and they wouldn't help me figure out what to do with the fact that my H lived with us all year but 6 days and he claimed ALL 3 KIDS! Left me on my own to owe thousands!<P>Where I live, we have an IRS building, and you can go right to IRS for FREE and get your taxes filed. H and R Block should be able to give you this address also> The IRS will also file electronically and what worries could you have if THEY do it.<P>The downfall, is you get there and have to wait your turn, no appointments , just first come first serve, although I'm sure it has its' slower times. It might be worth checking into. THe only thing is you may be on your own for the state taxes, that I'm not sure of.<P>If you can't find out from "the block" try 1-800-829-1040 and ask where they do it in your town. Obviously I've had to deal with IRS for a year now right, who memorizes that stupid number? lol.<P>Good luck, and at least ask for the most experienced one there , I was going to take the class myself this year, so it would have been my first year too. I think there are so many tax laws and they change each year, that its hard for new people to come right in and know what they need to.<P>TTYS<BR>Dana<BR>

Well, I have met a new friend who is a CPA that specializes in taxes!! How about that timing! So, I had a few of my questions answered and hope to be able to file soon. Looks like I might be getting back some money! Yeah!<P>Thanks for all your advice.<P>Jen