Saturday, April 5, 2014

Tax Returns Are Too Complicated

I have just finished my 2013 income taxes: 51 pages long, and I still owe the government thousands.  Some of the high yield securities that I bought last year are technically partnerships, so I get to file a Schedule K-1 as well, adding to complexity of the tax return.

Paying off the house to get rid of the mortgage in exchange for less investment income is sort of a wash from a cash flow standpoint, but in terms of simplified tax returns, it might be worth it.

2 comments:

  1. In the past you mentioned using tax preparation software. Perhaps it is worth considering hiring a tax accountant to look at ways to improve your situation (reduce complexity/taxes, etc).

    That's just a guess though as my taxes are very easy so using an accountant or software makes no sense for me. I make little money and have no savings and way too little in retirement/investments for my age (at this rate I will probably have to go to the Soylent Green euthanasia facility at age 65) so mine are just a few pages.

    At least you have something to report. Some of might like to trade! ;-)

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  2. Yes, this is something of a First World Problem, isn't it? I would be surprised if a tax accountant could improve on my situation -- I only pay 10% in federal income tax -- but it is still frustrating to have the complexity of a really rich person without the benefits.

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