Taxes - lots of deductions/losses

[Anonymous]

Because of an inheritance we have fairly complicated taxes this year. We took a loss on both an inherited rental property (partnership return) and on the sale of an inherited property (capital loss), and on the final trust tax return which was closed due to inheritance. These things combined reduce our taxable income substantially (e.g. by about 60 percent) and our tax liability by several thousand.

Our total income is always below $90k, so we're not high earners. All the losses are legitimate but I wonder if the sheer number of them makes us an audit risk? We do our taxes ourselves.

[Anonymous]

I recommend hiring an accountant this year due to the complexity.

[Anonymous]

No reason to hire an accountant. I know what I'm doing and it's not particularly complex.

[Anonymous]

Even though you know what you are doing, are you prepared to defend yourself if you are in fact audited? That's why I hire a CPA to do my taxes.

[Anonymous]

Yes, not only that but I'm not prepared to pay for a CPA to defend me if audited. Everything is meticulously backed up and by the book. If I was audited it would be a major headache but at the end of the day I am 100 percent confident that they wouldn't find anything that's a cause for concern.

[Anonymous]

Yes, you're at a higher risk of audit. Plus, since you know what you're doing, an audit is nothing to fear.